WPC Company's Budget and actual costs per unit are provided below for the most recent period. During this period, 700 units were actually produced. Product Product Standard Cost Actual Cost Materials Metres Unit Price Per Metre $10.00 $2.00 $2.20 Standard Actual 5.2 $11.44 Direct labour Hours Hourly Rate $5.00 $5.50 Standard 3 $15.00 Actual 3.2 $17.60 Variable overhead Hours Hourly Rate Standard 4 $3.00 $12.00 Actual 4.2 $3.10 $13.02 Total unit cost $37.00 $42.06 Required: Given the information above, compute the following variances. Also indicate if the variances are favorable or unfavorable.

WPC Company's Budget and actual costs per unit are provided below for the most recent period. During this period, 700 units were actually produced. Product Product Standard Cost Actual Cost Materials Metres Unit Price Per Metre $10.00 $2.00 $2.20 Standard Actual 5.2 $11.44 Direct labour Hours Hourly Rate $5.00 $5.50 Standard 3 $15.00 Actual 3.2 $17.60 Variable overhead Hours Hourly Rate Standard 4 $3.00 $12.00 Actual 4.2 $3.10 $13.02 Total unit cost $37.00 $42.06 Required: Given the information above, compute the following variances. Also indicate if the variances are favorable or unfavorable.

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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