In January 2021, Linda Co. has the following standard and actual costs related to 500 units...
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In January 2021, Linda Co. has the following standard and actual costs related to 500 units actually produced: I Standard Actual Direct Materials Standard: 2 kilogram at $1.5 per kilogram $3.00 Actual: 1.9 kilogram at 1.60 per kilogram $3.04 Direct Labor 9.00 Standard: 1.5 hours at $6.00 per hour Actual: 1.7 hours at 6.3 per hour 10.71 Required: Calculate the following variances, staying whether the variance is favorable (F) or unfavorable (U): 1. Direct material price variance. (1 mark) 2. Direct material quantity variance. (1 mark) 3. Direct labor rate variance. (1 mark) 4. Direct labor quantity(efficiency) variance. (1 mark) 5. Give TWO reasons why an unfavorable price variance for direct materials might be reported. (1 mark) In January 2021, Linda Co. has the following standard and actual costs related to 500 units actually produced: I Standard Actual Direct Materials Standard: 2 kilogram at $1.5 per kilogram $3.00 Actual: 1.9 kilogram at 1.60 per kilogram $3.04 Direct Labor 9.00 Standard: 1.5 hours at $6.00 per hour Actual: 1.7 hours at 6.3 per hour 10.71 Required: Calculate the following variances, staying whether the variance is favorable (F) or unfavorable (U): 1. Direct material price variance. (1 mark) 2. Direct material quantity variance. (1 mark) 3. Direct labor rate variance. (1 mark) 4. Direct labor quantity(efficiency) variance. (1 mark) 5. Give TWO reasons why an unfavorable price variance for direct materials might be reported. (1 mark)
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Related Book For
Management Accounting
ISBN: 9781760421144
7th Edition
Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton
Posted Date:
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