Shanghai Toy Company produced 10,000 stuffed bears. The standard direct material allowance is 1.75 kilograms per bear,
Question:
Shanghai Toy Company produced 10,000 stuffed bears. The standard direct material allowance is 1.75 kilograms per bear, at a cost per kg of $3. Actually, 16,500 kg of materials (input) were used to produce the 10,000 bears (output).
Similarly, the standard allowance for direct labour is 4.6 hours to produce one bear, and the standard hourly labour cost is $6. But 48,000 hours (input) were used to produce the 10,000 bears.
Compute the quantity variances for direct materials and direct labour.
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Material quantity usage variance Difference in kg Standa...View the full answer
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Related Book For 
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ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
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