The following actual data was given for the firm. 8,000 pounds of


Question Description:

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The following actual data was given for the firm. 8,000 pounds of material were purchased costing $ 40,000 Four hundred units were produced requiring 900 labor hours costing $4,500 and 1, 000 pounds of material . The standard for labor is 2 hours per unit with a wage rate of $3 per hour and for materials 2 pounds per unit at a price of $4 per unit. A) 10% – Calculate all labor variances B) 10%– Calculate all material variances C) 4% – Write an analysis of how you would explain to management the meaning of the variance you calculated

Answer

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