BagitUp Company manufactures paper bags. Consider the following selected data: Direct Materials Direct Labor Standards per Paper Bag 550 grams of input at $0.03 per gram 0.07 labor hours at $17 per labor hour Actual Performance: Paper Bags Produced and Sold 21,000 bags Direct Materials Purchased and Used 8,000,000 grams Labor Hours Used 1,800 labor hours Total Direct Materials Costs $193,000 Total Direct Labor Costs $47,800 Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. Enter all variances as positive values. a) Calculate price variance for direct materials. Favorable b) Calculate quantity variance for direct materials. 106500 Favorable c) Calculate labor rate variance. A Unfavorable d) Calculate efficiency variance for direct labor. 5610 Unfavorable +
BagitUp Company manufactures paper bags. Consider the following selected data: Direct Materials Direct Labor Standards per Paper Bag 550 grams of input at $0.03 per gram 0.07 labor hours at $17 per labor hour Actual Performance: Paper Bags Produced and Sold 21,000 bags Direct Materials Purchased and Used 8,000,000 grams Labor Hours Used 1,800 labor hours Total Direct Materials Costs $193,000 Total Direct Labor Costs $47,800 Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. Enter all variances as positive values. a) Calculate price variance for direct materials. Favorable b) Calculate quantity variance for direct materials. 106500 Favorable c) Calculate labor rate variance. A Unfavorable d) Calculate efficiency variance for direct labor. 5610 Unfavorable +
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:BagitUp Company manufactures paper bags. Consider the following selected data:
Direct Materials
Direct Labor
Standards per Paper Bag 550 grams of input at $0.03 per gram 0.07 labor hours at $17 per labor hour
Actual Performance:
Paper Bags Produced and Sold
21,000 bags
Direct Materials Purchased and Used 8,000,000 grams
Labor Hours Used
1,800 labor hours
Total Direct Materials Costs
$193,000
Total Direct Labor Costs
$47,800
Do not enter dollar signs or commas in the input boxes.
Round all answers to the nearest whole number.
Enter all variances as positive values.
a) Calculate price variance for direct materials.
Favorable
b) Calculate quantity variance for direct materials.
106500
Favorable
c) Calculate labor rate variance.
A
Unfavorable
d) Calculate efficiency variance for direct labor.
5610
Unfavorable +
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