Q4.The following standards have been established for a raw material used to make the product:4.5 poundsStandard quantity of the material per unit ofoutputStandard price of the materialThe following data pertain to a recent month's operations:$13.90 per poundActual material purchasedActual cost of material purchasedActual material used in productionActual output produced2000 pounds$262001300 pounds220 units3.3 hours per unit$10.50 per hour1100 hoursStandard direct labor-hoursStandard direct labor wage rateActual direct labor-hours workedActual direct labor wages paid$11385a) What is the materials price variance for the month?b) What is the materials quantity variance for the month?c) What was the labor rate variance for the month?d) What was the labor efficiency variance for the month?e) Discuss the concept of 'Management by exception'.

Hi student Since there are multiple subparts, we will answer only first three subparts.

Answered: The following standards have been…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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