Fine Lumber Inc. mills and finishes furniture kits. A certain kit requires the following: Direct materials standard:
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Question:
Fine Lumber Inc. mills and finishes furniture kits. A certain kit requires the following:
Direct materials standard: 2 square yards at $13.50 per yard
Direct manufacturing labor standard: 1.5 hours at $20.00 per hour
During the third quarter, the company made 1,500 kits and used 3,150 square yards of wood costing $42,600. Direct labor totaled 2,100 hours for $46,150.
Required:
a.Use a worksheet to compute the following variances and indicate whether each variance is favorable or unfavorable: direct materials price and efficiency variances for the quarter, and
b. direct manufacturing labor price and efficiency variances for the quarter.
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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