A company's standard cost system requires 7,000 direct laborhours per month jg. qtler taproduce 3,500 units of handbags.The management has set 2 standard of using 4.3 yards ofdirect materials per unit of handbag. Information regardingstandard costs is mentioned below:ParticularsTotal standard direct materials costTotal standard direct labor costTotal standard variable manufacturing overhead(based on direct labor-hours)AmountParticularsTotal actual direct materials costTotal actual direct labor costTotal actual variable manufacturing overhead$54,250$42,000$18,200During November, the company produced 3,600 wits ofhandbags using 6 960 direct labor hours. Actual cots recordadisthe month of Novemb are ss allows:Amount$64,800$52,200$24,360The company used 21,600 yards of materials to produce 3,600unis of handbags. Materials purchased during the month wereused in production.Requirement: Determine the direct materials price variance anddirect labor eficiency vaiance. (Rousd all he ntemuedistecaleslations to 2 decimal places)Direct materials price variance is $9,504 U and direct labor efficiency variance is $1,440 U.Direct materials price variance is $3,640 U and direct labor efficiency variance is $240U.Direct materials price variance is $9,504 F and direct labor efficiency variance is $1,440 F.Direct materials price variance is $3640 F and direct labor efficiency variance is $240F.

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Description: A company's standard cost system requires 7,000 direct laborhours per month jg. qtler taproduce 3,500 units of handbags.The management has set 2 standard of using 4.3 yards ofdirect materials per unit of handbag. Information regardingstandard costs

Variance analysis is a tool used in management accounting. In this, we calculate the deviations of…

Answered: Requirement: Determine the direct…

Business

Accounting

Requirement: Determine the direct materials price variance and direct labor eficiency vaiance. (Rousd all he ntemuediste caleslations to 2 decimal places)

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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