Manlow Company makes a pasta sauce for the restaurant industry. The standard cost of direct materials...
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Manlow Company makes a pasta sauce for the restaurant industry. The standard cost of direct materials and direct labor for one unit of sauce is as follows: STANDARD Manufacturing cost Direct materials Direct labour . . Quantity 6 litres 0.5 hours During the month the following transactions occurred in the manufacturing of 10,000 units of sauce: Required a) b) Price/Rate $0.90 per litre $12.00 per hour Cost A total of 58,000 litres of direct materials were used to produce 10,000 units ( 5.8 litres per unit). The actual cost per litre was $1.00. Direct materials variance AQ X AP $5.40 $6.00 A total of 4,900 direct labour hours were worked at an hourly rate of $11.50 per hour for a total labour cost of $56,350. Calculate the flexible budget variance, price variance and quantify variance for direct materials. AQ x SP Calculate the flexible budget variance, rate variance and efficiency variance for direct labour. SQ x SP Direct materials variance AQ X AP Direct labor variance AQ X AP AQ x SP I AQX SP SQ x SP SQ x SP Manlow Company makes a pasta sauce for the restaurant industry. The standard cost of direct materials and direct labor for one unit of sauce is as follows: STANDARD Manufacturing cost Direct materials Direct labour . . Quantity 6 litres 0.5 hours During the month the following transactions occurred in the manufacturing of 10,000 units of sauce: Required a) b) Price/Rate $0.90 per litre $12.00 per hour Cost A total of 58,000 litres of direct materials were used to produce 10,000 units ( 5.8 litres per unit). The actual cost per litre was $1.00. Direct materials variance AQ X AP $5.40 $6.00 A total of 4,900 direct labour hours were worked at an hourly rate of $11.50 per hour for a total labour cost of $56,350. Calculate the flexible budget variance, price variance and quantify variance for direct materials. AQ x SP Calculate the flexible budget variance, rate variance and efficiency variance for direct labour. SQ x SP Direct materials variance AQ X AP Direct labor variance AQ X AP AQ x SP I AQX SP SQ x SP SQ x SP
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a Flexible Budget Variance 58000 54000 4000 Favorable Price Variance ... View the full answer
Related Book For
Cost Management Accounting and Control
ISBN: 978-0324559675
6th Edition
Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan
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