FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Zeke's Bikes uses a
Standards:
| 3 lbs of material per unit at a cost of $1.15 per pound. |
|---|
| 2 direct labor hours per unit costing $11.25 per hour. |
Actual:
| 2,500 lbs of material were purchased at a cost of $1.20 per pound. |
|---|
| Employees worked 1,800 hours and were paid $10.75 per hour. |
Zeke's Bikes produced a 1,000 bikes this period.
1. Calculate the direct materials cost variance and the direct materials efficiency variance.
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2. Calculate the direct labor cost variance and the direct labor efficiency variance.
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Direct Materials Cost
Variance
Direct Materials
Efficiency Variance
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Direct Labor Cost
Variance
Direct Labor
= Efficiency Variance
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Favorable or
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