Aday's Pie Factory has set standard for production of 130,000 pies as follows: Standard Quantity 36,000 lbs
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Question:
Aday's Pie Factory has set standard for production of 130,000 pies as follows:
| Standard Quantity | 36,000 | lbs |
| Standard Price (ingredients) | $1.40 | per lb |
| Standard Labor Hours | 15,000 | |
| Standard Labor Rate | $4.45 | |
| Standard Overhead Rate | $2.50 | per hour |
During the last period, Aday's produced 96,000 pies and the following usage information.
| Actual Quantity Used | 36,000 | lbs |
| Actual Cost (ingredients) | $57,600 | |
| Actual Labor Hours | 14,000 | hours |
| Actual Payroll | $79,800 | |
| Actual Overhead Costs | $30,000 |
Use the information above, to calculate the following:
a) What is the conversion factor?
b) What is the Quantity Variance?
c) What is the Price Variance?
Expert Answer:
Ans 1 Conversion Factor Actual UnitsStandard Units 96000130000 074 2 Quantit... View the full answer
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