Direct materials and direct labor:, Cost Accounting

Assignment Help:

McDaniel Company manufactures 100-pound bags of fertilizer that have the following unit standard costs for direct materials and direct labor:


Direct Materials (100 lbs. @ $1.00 per lb.) $100.00
Direct Labor (0.5 hours at $24 per hours ) $12.00
Total Standard prime Cost per 100 lb. bag $112.00
The following activities were recorder for October:
• 1,000 bags were manufactured.
• 95,000 lbs. of materials costing $76,000 were purchased.
• 102,500 lbs. of materials were used.
• $12,000 was paid for 475 hours of direct labor.
There were no beginning or ending work-in-process inventories.
Required:
A) Compute the direct material variances.
What is the Material Price Variance? Favorable or unfavorable?
What is the Material Usage Variance? Favorable or unfavorable?
Show Work for each.
B) Compute the Direct Labor Variances.
What is the labor rate variance? Favorable or unfavorable?
What is the Labor efficiency variance? Favorable or unfavorable?
Show work for each.
C) C. Give possible reasons for the occurrence of each of the preceding variances.

 


Related Discussions:- Direct materials and direct labor:

Product costing and pricing, Critically evaluate the product costing and pr...

Critically evaluate the product costing and pricing practices actually in use in modern manufacturing organisations inany of the three countries in the Asia Pacific region, prefera

Compute the cost of goods sold, The following data (in thousands of dollars...

The following data (in thousands of dollars) have been taken from the accounting records of Barn Burner Corporation for the just completed year.       Sales

Cost classification, #question.discuss the importance of cost classificatio...

#question.discuss the importance of cost classification to a business organisation?

Labour costs, what are the classifications of labour costs? what is employe...

what are the classifications of labour costs? what is employee psyche?

Costs and revenue, Costs and Revenue Cost of the development work ...

Costs and Revenue Cost of the development work done in-house to 1 January 2009 has been £1.5m with a further cost of £50,000 per month from now until the software is ready

Calculate the reduction in failure costs per unit, Each unit of a product r...

Each unit of a product requires four components. The average number of components is 4.25 due to component failure. Purchasing higher quality components can reduce the average numb

Traditional income statement, Traditional income statement: The DU Inn i...

Traditional income statement: The DU Inn is an 80-room hotel located on some mountaintop in Colorado. It has no bar or restaurant and is positioned as a mid-priced, good quality

Abnormal loss account and abnormal gain account, A product is manufactured ...

A product is manufactured by passing through three processes: A, B and C. In process C a by-product is also produced which is then transferred to process D where it is completed. F

Importance of cost classification, Importance of Cost Classification A...

Importance of Cost Classification Analysis of cost behaviour is significant to all organizations for effective management. It is since many organizations have a unique cost st

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd