Chiu Enterprises, which produces a single product, has prepared the following standard cost sheet for one unit
Question:
Chiu Enterprises, which produces a single product, has prepared the following standard cost sheet for one unit of the product.
Direct materials (8 kilograms at HK$25 per kilogram).................HK$200
Direct labor (3 hours at HK$120 per hour).....................................HK$360
During the month of April, the company manufactures 230 units and incurs the following actual costs.
Direct materials purchased and used (1,900 kilograms)........................HK$50,350
Direct labor (700 hours)..............................................................................HK$81,200
Instructions
Compute the total, price, and quantity variances for materials and labor.
Step by Step Answer:
Accounting Principles
ISBN: 978-1119419617
IFRS global edition
Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt