The Comet Company's budget contains these standards for materials and direct labor for a unit: Material...

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Accounting

The Comet Company's budget contains these standards formaterials and direct labor for a unit: Material 5 lbs. @ $1per lb. = $5
Labor 2 hrs. @ $5 per hr. = $10
Although 2,500 units were budgeted, 3,000 wereactually produced. Materials weighing 16,000 lbs. werepurchased for $18,400. Materials weighing 15,500 lbs. were issuedto production. Direct Labor costs were $33,075 for 6,750 hrs.
A.) What's the materials price variance?
B.) What's the materials quantity variance?
C.) What's the total material variance?
D.) What's the labor rate variance?
E.) What's the labor efficiency variance?
F.) What was the total labor variance?
Thanks! :)

Answer & Explanation Solved by verified expert

3.7 Ratings (341 Votes)

Material Price Variance 232500 UnfavourableU Material quantity variance 50000 UnfavourableU Total Material Variance 282500 UnfavourableU Labor rate variance 67500 FavourableF Labor Efficiency variance 375000 UnfavourableU Total Labor variance 307500 UnfavourableU Material variance alternate solution taking See Answer

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