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2. Blue Hose Company employees a
Raw Materials 2 lbs per unit at $6 per lb
Labor 4 hours per unit at $12 per hour
Actual direct material cost was $418,000 for 76,000 lbs of material used to manufacture 30,400 units in November. All materials purchased were used in November. Workers were paid $1,510,000 for 125,000 hours of work.
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Compute the price/rate, quantity/efficiency and flexible spending variances for direct materials and direct labor. Please label all variances.
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For the price and quantity/efficiency variances, explain what happened and then give a possible explanation as to why it happened.
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If I tried to use this method when doing other problems will all the negatives always be unfavorable?
If I tried to use this method when doing other problems will all the negatives always be unfavorable?
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