Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. materials and labor variances at the beginning of

Materials and Labor Variances At the beginning of the year, Craig Company had the following...

50.1K

Verified Solution

Question

Accounting

image
Materials and Labor Variances At the beginning of the year, Craig Company had the following standard cost sheet for one of its plastic products: Direct materials (5 Ibs. @ $4.00) $20.00 Direct labor (2 hrs. @ $15.00) 30.00 Standard prime cost per unit $50.00 The actual results for the year are as follows: a. Units produced: 440,000. b. Materials purchased: 3,080,000 pounds @ $4.70. c. Materials used: 2,552,000 pounds. d. Direct labor: 792,000 hours @ $12.48. Required: 1. Compute price and usage variances for materials. Enter amounts as positive numbers and select Favorable or Unfavorable. X Unfavorable Material price variance X Unfavorable Material usage variance 2. Compute the labor rate and labor efficiency variances. Enter amounts as positive numbers and select Favorable or Unfavorable. Favorable Labor rate variance Favorable V Labor efficiency variance

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students