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Chemical Incorporated. has set the following standards for direct materials and direct labor for each 20-pound bag of Weed-Be-Doom: Per Bag $ 6.00 6.30 Direct materials: 25 pounds XF-2000 @ $0.24/pound Direct labor: 0.21 hour @ $38/hour The firm manufactured 100,000 bags of Weed-Be-Doom in December and used 2,700,000 pounds of XF-2000 and 21,405 direct labor hours. During the month, the firm purchased 3,000,000 pounds of XF-2000 at $0.155 per pound and incurred a total payroll of $749,175 for direct labor. The firm records purchases at standard cost and therefore recognizes the direct materials price variance at point of purchase. Required: aterials and the rate and efficiency variances for direct labor.

Chemical Incorporated. has set the following standards for direct materials and direct labor for each 20-pound bag of Weed-Be-Doom: Per Bag $ 6.00 6.30 Direct materials: 25 pounds XF-2000 @ $0.24/pound Direct labor: 0.21 hour @ $38/hour The firm manufactured 100,000 bags of Weed-Be-Doom in December and used 2,700,000 pounds of XF-2000 and 21,405 direct labor hours. During the month, the firm purchased 3,000,000 pounds of XF-2000 at $0.155 per pound and incurred a total payroll of $749,175 for direct labor. The firm records purchases at standard cost and therefore recognizes the direct materials price variance at point of purchase. Required: aterials and the rate and efficiency variances for direct labor.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the price and usage variances for direct materials and the rate and efficiency variances for direct labor. Direct materials: Purchase-price variance Usage variance Direct labor: Rate variance Efficiency variance <Required 1 Required 2 >
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the price and usage variances for direct materials and the rate and efficiency variances for direct labor. Direct materials: Purchase-price variance Usage variance Direct labor: Rate variance Efficiency variance <Required 1 Required 2 >
Chemical Incorporated. has set the following standards for direct materials and direct labor for each 20-pound bag of Weed-Be-Doom: Per Bag Direct materials: 25 pounds XF-2000 @ $0.24/pound Direct labor: 0.21 hour @ $30/hour $ 6.00 6.30 The firm manufactured 100,000 bags of Weed-Be-Doom in December and used 2,700,000 pounds of XF-2000 and 21,405 direct labor hours. During the month, the firm purchased 3,000,000 pounds of XF-2000 at $0.155 per pound and incurred a total payroll of $749,175 for direct labor. The firm records purchases at standard cost and therefore recognizes the direct materials price variance at point of purchase. Required: 1. Compute the price and usage variances for direct materials and the rate and efficiency variances for direct labor.
Transcribed Image Text:Chemical Incorporated. has set the following standards for direct materials and direct labor for each 20-pound bag of Weed-Be-Doom: Per Bag Direct materials: 25 pounds XF-2000 @ $0.24/pound Direct labor: 0.21 hour @ $30/hour $ 6.00 6.30 The firm manufactured 100,000 bags of Weed-Be-Doom in December and used 2,700,000 pounds of XF-2000 and 21,405 direct labor hours. During the month, the firm purchased 3,000,000 pounds of XF-2000 at $0.155 per pound and incurred a total payroll of $749,175 for direct labor. The firm records purchases at standard cost and therefore recognizes the direct materials price variance at point of purchase. Required: 1. Compute the price and usage variances for direct materials and the rate and efficiency variances for direct labor.
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