During June, the plant produced 15,000 pools and incurred the following costs:

1. Purchased 60,000 pounds of materials at a cost of $1.65 per pound.

2. Used 49,200 pounds of materials in production.

3. Worked 11,800 direct labor hours at a cost of $7.00 per hour.

4. Incurred variable manufacturing overhead costs totaling $18,290. A total of 5,900 machine hours was recorded

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1) What is the dollar amount and type of the direct materials price variance?

2) What is the dollar amount and type of the direct materials quantity variance?

3) What is the dollar amount and type of the direct materials quantity variance if the amount of materials purchased equals the number of materials used in production?

4) What is the dollar amount and type of the direct labor rate variance?

Answer rating: 100% (QA)

ANSWER 1 Material Price Variance 21000 Favourable Material Price Variance is the difference between the Actual cost incurred and the standard cost of ... View the full answer