Fritz Corp. manufactures and sells a single product. The company uses a standard cost system. The standard cost per unit of product follows:Materials-1 Ib plastic @ $3.00$ 3.00Direct labor-1.6 hr @ $10.00.16.00Factory overhead.4,45Total. .$23.45The charges to the manufacturing department for November, when 5,000 units were produced, follow:Materials-5,300 lb @ $3.00.$ 15,900Direct labor-8,200 hr @ $9.80.80,360Factory overhead23,815Total.$120,075The Purchasing department normally buys about the same quantity as is used in production during a month. In November, 5,500 Ib were purchased at a price of $2.90 per pound.Critical Thinking ProblemREQUIRED:Calculate the following from standard costs for the data given, using the formulas in Determination of Variances on pages 421-422 and 424:1. Materials quantity variance.2. Materials purchase price variance (at time of purchase).3. Labor efficiency variance.4. Labor rate variance.5. Give some reasons as to why both the materials quantity variance and labor efficiency variance might be unfavorable. StandardActualQuantityor HoursQuantityor HoursStandardDifferencePrice/RateVariance1. Materials quantity varianceIbs.Ibs./lb.3. Labor efficiency variancehrs.hrs./hr.ActualQuantityor HoursStandardActualPrice/RatePrice/RateDifferenceVariance2. Materials purchase price variance/lb./lb.Ibs.4.Labor rate variance/hr./hr.hrs.5.

Name: Fritz Corp. manufactures and sells a single product. The company uses
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Fritz Corp. manufactures and sells a single product. The company uses a standard cost system. The standard cost per unit of product follows:Materials-1 Ib plastic @ $3.00$ 3.00Direct labor-1.6 hr @ $10.00.16.00Factory overhead.4,45Total. .$23.45The