
Concept explainers
Material and Labor Variances:
Material and labor variances are computed on the basis of
Material variances includes the deviation to be computed for quantity of material allowed to be used and actual quantity consumed and other deviation for price actually paid or price fixed as standard to be paid.
Labor Variances likewise, also includes the deviation to be computed for hours allowed for actual output and actual hours worked and other deviation for actual labor rate per hour paid and rate per hour fixed as standard to be paid.
Requirement1:
The Computation of Direct material cost and efficiency variance.
Requirement2:
The Computation of Labor cost and Efficiency variance.
Requirement3:
The

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Chapter 23 Solutions
ACCOUNTING PRINCIPLES 222 5/16 >C<
- Titan Enterprises uses a standard cost system. ⚫ Standards call for 3 direct labor hours per unit. The standard labor rate is $12 per hour. • Five pounds of material are needed per unit at a standard cost of $3.00 per pound. • Titan produces 14,500 units during the year. • Direct labor costs are $540,600 for 44,900 hours. • Titan purchases 78,000 pounds of materials at $3.20 per pound and uses 73,600 pounds (the rest remain in inventory). For direct labor, what is the efficiency (usage) variance?arrow_forwardFinancial Accounting Questionarrow_forwardIf you give me wrong answer this financial accounting question I will give you unhelpful ratearrow_forward
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