Wheeler Corporation produces and sells special eyeglass straps for sporting
Wheeler Corporation produces and sells special eyeglass straps for sporting enthusiasts. In 2009, the company budgeted for production and sales of 1,200 straps. However, the company produced and sold just 1,100 straps. Each strap has a standard requiring 1 foot of material at a budgeted cost of $1.50 per foot and 2 hours of assembly time at a cost of $12 per hour. Actual costs for the production of 1,100 items were $1,435.50 for materials (990 feet at $1.45 per foot) and $29,161 for labor (2,420 hours at $12.05 per hour).

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

Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help