Reference no: EM133028911

Questions -

a. Your Corporation uses a standard cost system to collect costs related to the production. The labor standards for each unit are 1.2 hours at a standard cost of $18 per hour. During the month, employees work 34,000 hours in the production of 30,000 units. The total labor cost was $649,400. What is the rate (price) variance for the month?

b. A small component is purchased for the use in the production of a major product. The standard price of the component is $0.85. During a recent period, 7,800 units were purchased and 6,800 were actually used. The standard quantity of units allowed for the actual output of the period was 6,540 units. What was the materials quantity variance?