CHAPTER 10: See information in Textbook for Exercise 10-50. I need to change two numbers. Change the number of units produced to be 410,000 and the number of pounds of materials purchased to be 2,075,000 instead of the quantities given for these in the exercise.

10-50

At the beginning of the year, Crag Company had the following standard cost sheet for one of its plastic products.

Direct materials ( 5 lbs @ 54.00) $20.00

Direct Labor ( 2 hours @ 15.00) 30.00

Standard prime cost per unit 50.00

the actual results for the year are as follows:

a. Units produced: 400,000

b. Materials purchased: 2,060,000 pounds @ 3.95

c. Materials used: 2,100,000 pounds

d. Direct labor: 825,000 hours @ 14.85

1. Compared price and usage variances for materials.

2. Compute labor rate efficiency variances, using both the formula and columnar approaches.