An ice cream producer manufactures 10,000 liters of strawberry ice cream in a month. The standard number

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An ice cream producer manufactures 10,000 liters of strawberry ice cream in a month.

The standard number of hours of direct labor per 1,000 liters is 40 hours at a standard labor rate of \($10\) per hour. The standard quantities and prices of ingredients per 1,000 liters of ice cream are 1,200 liters of cream at \($1\) per liter, 30 kilograms of strawberries at \($0.50\) per kilogram, and 1,000 containers at \($0.05\) per container. During the month, the ice cream maker produced 11,000 liters of strawberry ice cream. The labor rate of direct labor was \($12\) per hour for 420 hours. The actual price of the cream was \($0.90\) per liter and 13,000 liters were used. The actual price of strawberries was \($0.60\) per kilogram and 300 kilograms were used. The quantity of containers used was 11,200 and the actual price was \($0.06\) per container.

Calculate all of the direct material and labor variances.

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Management Accounting In A Dynamic Environment

ISBN: 9780415839020

1st Edition

Authors: Cheryl S McWatters, Jerold L Zimmerman

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