Watson manufacturing has set the following standard costs per unit for its product: Cost Component Standard Cost Direct Materials (18 lbs. @ $4.20 per lb.) $75.60 Direct Labor (3.5 hrs. @ $16 per hr.) $56.00 During August, the company incurred the following actual costs to produce 9,500 units: Cost Component Direct Materials (170,000 lbs. @ $4.10 per lb.) Direct Labor (37,000 hrs. @ $16.20 per hr.) Actual Cost $697,000 $599,400 Compute the Direct Materials Price and Quantity Variances.

Watson manufacturing has set the following standard costs per unit for its product: Cost Component Standard Cost Direct Materials (18 lbs. @ $4.20 per lb.) $75.60 Direct Labor (3.5 hrs. @ $16 per hr.) $56.00 During August, the company incurred the following actual costs to produce 9,500 units: Cost Component Direct Materials (170,000 lbs. @ $4.10 per lb.) Direct Labor (37,000 hrs. @ $16.20 per hr.) Actual Cost $697,000 $599,400 Compute the Direct Materials Price and Quantity Variances.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...

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