Material and labor variances Complete the following: The following data pertain
ID: 2761124 • Letter: M
Question
Material and labor variances
Complete the following:
The following data pertain to the first week of operations during June:
Materials:
Actual purchases........................................1500 units @$3.80/unit
Actual usage...............................................1350 units
Standard usage...........................................1020 units @$4.00/unit
Labor:
Actual hours...............................................310 hours @ $12.10/hour
Standard hours...........................................340 hours @ $12.00/hour
Complete the three material variances and the two labor variances.
Explanation / Answer
Particulars Standard Actual Qty Rate amount Qty Rate amount Materials 1,020.00 4.00 4,080.00 1,500.00 3.80 5,700.00 Labour 340.00 12.00 4,080.00 310.00 12.10 3,751.00 DMPV = (SP-AP)*AQ Purchased DMPV = ( 4 - 3.8)1,500 DMPV = 300 F DMQV= (SQ-AQ used)SP DMQV= (1,020 - 1,350)4 DMQV= 1,320 U DMCV= DMPV + DMQV DMCV= 300 - 1,320 DMCV =1,020 U DLRV= (SR-AR)AH DLRV= (12 - 12.10)310 DLRV= 31U DLEV = (SH-AH)SR DLEV = (340 - 310)12 DLEV = 360 F