Last year, Dionne company budgeted for the production and sale of 3150 gizmos. Actual production and sales were 3500 gizmos for $360 each. Each item was budgeted to use 4 direct labor hours (s) and 8 pieces (s) of material. Dionne expected to pay $2.00 per piece and $14.00 per hour. Dionne does not keep any raw materials inventory. Actual production required the following: 25200 pieces at $2.20 per piece 15400 hours at $11.20 per hour

Compute and label each of the following variances.

Materials price variance = 

Materials usage variance = 

Labor rate variance = 

Labor efficiency variance =

Answer rating: 100% (QA)

Lets start by calculating each of the variances 1 Materials price variance The materials price varia... View the full answer