FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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A 97.

Material and Labor Variances
The following actual and standard cost data for direct material and direct labor relate to the production of 2,000 units of a product:
Actual Costs
Standard Costs
Direct material 23,100 lbs. @ $4.90 22,000 lbs. @ $5.20
Direct labor 31,350 hrs. @ $9.30 33,000 hrs. @ $9.50
Determine the following variances:
Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable.
Materials Variances
Actual cost:
Split cost:
Standard cost:
$
$
$
a. Materials price
$
b. Materials efficiency $
113,190 ✔
0 x
114,400 ✓
Actual cost:
Split cost:
6,930✔ F ◆
5,720 U +
Labor Variances
$
$
Standard cost: $
c. Labor rate
$
d. Labor efficieny $
291,555 ✔
0 x
313,500✔
6,270 F
15,675 ✓ F
◆
◆
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Transcribed Image Text:Material and Labor Variances The following actual and standard cost data for direct material and direct labor relate to the production of 2,000 units of a product: Actual Costs Standard Costs Direct material 23,100 lbs. @ $4.90 22,000 lbs. @ $5.20 Direct labor 31,350 hrs. @ $9.30 33,000 hrs. @ $9.50 Determine the following variances: Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable. Materials Variances Actual cost: Split cost: Standard cost: $ $ $ a. Materials price $ b. Materials efficiency $ 113,190 ✔ 0 x 114,400 ✓ Actual cost: Split cost: 6,930✔ F ◆ 5,720 U + Labor Variances $ $ Standard cost: $ c. Labor rate $ d. Labor efficieny $ 291,555 ✔ 0 x 313,500✔ 6,270 F 15,675 ✓ F ◆ ◆
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