Refer to the information in Exercise 23-8 and compute the (1) Direct materials price variance and (2)

Question:

Refer to the information in Exercise 23-8 and compute the

(1) Direct materials price variance and

(2) Direct materials quantity variance. Indicate whether each variance is favorable or unfavorable.

Data From Exercise 23-8

A manufactured product has the following information for June.

(1) Prepare the standard cost card showing standard cost per unit.

(2) Compute total budgeted cost for June production.

(3) Compute total actual cost for June production.

(4) Compute total cost variance for June, and indicate whether the variance is favorable or unfavorable.

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Fundamental Accounting Principles

ISBN: 9781260247985

25th Edition

Authors: John J Wild, Ken Shaw

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Question Posted: Oct 28, 2021 03:01 AM

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Refer to the information in Exercise 23-8 and compute the (1) Direct materials price variance and (2)

Question:

Standard Quantity and Cost Actual Results 6 Ibs. @ $8 per Ib. Direct materials......... Direct labor .... 48,500 Ibs. @ $8.10 per Ib. 15,700 hrs. @ $16.50 per hr. 2 DLH @ $16 per DLH 2 DLH @ $12 per DLH Overhead $198,000 Units manufactured..... 8,000 units

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