Corp developed (budgeted) standard costs for DM and DL. In 2015, it estimated the following standard costs
Question:
Corp developed (budgeted) standard costs for DM and DL. In 2015, it estimated the following standard costs for one of his major products, the 30-gallon heavy-duty plastic container.
Budgeted Quantity Budgeted Price
Direct materials 0.30 pounds $20 per pound
Direct labor 0.20 hours $12 per hour
During July, it produced and sold 3,000 containers using 1,000 pounds of DM at an average cost per pound of $19 and 625 DLH at an average wage of $11.75 per hour.
Calculate
a) July's direct material flexible-budget variance
b) The direct material price variance during July
c) The direct material efficiency variance during July
d) The direct manufacturing labor flexible-budget variance during July
e) The direct manufacturing labor price variance during July
f) The direct manufacturing labor efficiency variance during July is how much
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn