+1-415-670-9189
info@expertsmind.com
Calculate the labor rate and labor efficiency variances
Course:- Managerial Accounting
Reference No.:- EM13939161




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Managerial Accounting

MATERIALS AND LABOR  VARIANCES

At the beginning of the year, Shults Company had the following standard cost sheet for one of its plastic products:

Direct materials (5 lbs. @ $4.00)

$20.00

Direct labor (2 hrs. @ $11.25)

  22.50

Standard prime cost per unit

$42.50

The actual results for the year are as follows:

a. Units produced: 175,000.

b. Materials purchased: 930,000 pounds @ $4.10.

c. Materials used: 925,000 pounds.

d. Direct labor: 362,500 hours @ $11.15.

Required:

1. Compute price and usage variances for materials.

2. Compute the labor rate and labor efficiency variances.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Managerial Accounting) Materials
Journalize these transactions in a two-column journal. Post the entries prepared in (A) to the following T accounts: Cash, Supplies, Accounts Receivable, Accounts Payable, Fee
Which manager is likely to see higher returns over a 1-year investment horizon? Why? Which manager is likely to see higher returns over a 10-year investment horizon? Why?
Kieran has asked you to state which of the suppliers' offers you would recommend and any other potential concerns you may have. Write a memo to Kieran and remember that Zenn
Compare the two divisions in terms of return on investment and residual income. In the past year, which division has created the most wealth for McIntyre share holders?
Katara Enterprises distributes a single product whose selling price is $36 and whose variable expense is $24 per unit. The company's monthly fixed expense is $12,000.
The president asks you to compare the alternatives on a total-annual-cost basis and on a per-unit basis for annual needs of 60,000 units. Which alternative seems more attrac
Using the general guideline presented in the chapter, what is the minimum price at which the Airbag Division would sell airbags to the Igo Division?
Suppose one predetermined rate per copy was used to allocate all photocopy costs. What rate would be used and how much cost would be allocated to the Public Works Department