Question

The Woods Enterprises prepared the following standard costs for the production of one stuffed bear:
Direct materials..... 1.5 pounds of stuffing @ $2 per lb
Direct labor ....... 2 hours of assembly @ $15 per hr
Actual production costs for the production of 1,000 stuffed bears required 1,750 pounds of stuffing at a cost of $1.95 per pound and 1,950 labor hours at $15.25 per hour.

Required
A. Calculate the direct material price variance.
B. Calculate the direct material usage variance.



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  • CreatedMarch 11, 2015
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