Question: Last year, Wrigley Corp. adopted a standard cost system. Labor standards were set on the basis of time studies and prevailing wage rates. Materials standards

Last year, Wrigley Corp. adopted a standard cost system. Labor standards were set on the basis of time studies and prevailing wage rates. Materials standards were determined from materials specifications and the prices then in effect.
On June 30, the end of the current fiscal year, a partial trial balance revealed the following:

Standards set at the beginning of the year have remained unchanged. All inventories are priced at standard cost. What conclusions can be drawn from each of the four variances shown in Wrigley€™s trial balance?

Debit Credit Materials Price Variance. 52,000 Materials Quantity Variance Labor Raste Variance200 Labor Efficiency Variance

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