Marc No G HW Chpt 8 ?. C | ? Not secure l ezto.mheducation.com/hm.tpx Apps 83 Th

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Marc No G HW Chpt 8 ?. C | ? Not secure l ezto.mheducation.com/hm.tpx Apps 83 The history of graffiti USI-Tech Back Office Standard Quantity or Standard Price Standard Hours or Rate Direct materials Direct labor 6.80 pounds $ 2.90 per pounds 0.20 hours $19.72 S 1.80 $9.00 per hour During the most recent month, the following activity was recorded a. 15,100 pounds of material were purchased at a cost of $2.60 per pound b. All of the material purchased was used to produce 2,000 units of Zoom c. 300 hours of direct labor time were recorded at a total labor cost of $3,300 Required 1. Compute the materials price and quantity variances for the month (Indicate the effect of e variance by selecting "F tor favorable, "U" for unfavorable, and "None" for no effect variance).) Direct materials price variance S 39 Direct materials quantity variance 2. Compute the labor rate and emciency ncý variances for the month. (Indicate the effect of each by selecting t"Fi tor favorable, ru" for unfavorable, and "None" for no effect (i.e., zerc Do not round your intermedlate calculations.) Direct labot rate varnant

Explanation / Answer

CALCULATION OF THE STANDARD PRICE PER UNIT Standard Unit (Pounds) Standard Rate (Per pound) Standard Material Cost per unit 6.8 $                     2.90 $                            19.72 Calculation of Standard Material Cost for 2000 units Standard Unit (KG) Standard Rate (Per KG) Standard Material Cost 13600 $                     2.90 $                    39,440.00 (2000 Unit X 6.80 ) Calculation of the Actual Cost for producing 2000 Units   Actual Qty Actual Rate Actual Material Purchase 15100 $                     2.60 $                    39,260.00 Material price Variance = (Standard Price - Actual Price) X Actual Qantity) Material price Variance = ($ 2.90 - $ 2.60) X 15100 Material price Variance = $0 .30 X 15100 Material price Variance = $ 4,530 (favorable) Material Quantity Variance = (Actual Quantity used - Standard quantiy ) X Standard Cost Material Quantity Variance = (15,100 units - 13,600 units) X $ 2.90 Material Quantity Variance = 1500 units X $ 2.90 Material Quantity Variance = $ 4,350 Unfavorable

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