James Company is a manufacturer of biscuits. The standard direct materials quantity required to produce one large
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James Company is a manufacturer of biscuits. The standard direct materials quantity required to produce one large biscuit is 1 pound at a cost of $5 per pound. Every biscuit requires 2 direct labor hours at a standard cost of $3 per direct labor hour.
During November, 2015, 7,200 large biscuit were produced using 7,500 pounds costing $45,000. At the end of November, an examination of the labor cost records showed that the company used 15,000 direct labor hours (Dh?r) at a cost of $4 per hour.
Using the format below, prepare an analysis of the direct labor cost variances.
Related Book For
Financial Theory and Corporate Policy
ISBN: 978-0321127211
4th edition
Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri
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