Question: need direct and simple solution Malfoy Manufacturing makes a product with the following standard costs: Standard Qty or Standard Price or Hours Rate Direct materials.......
Malfoy Manufacturing makes a product with the following standard costs: Standard Qty or Standard Price or Hours Rate Direct materials....... 2 Liters $4.00 per liter Direct labor 1.5 hours $22 per hour Variable overhead ..... 1.5 hours $5 per hour The company produced 5,000 units in September using 10,500 liters of direct material and 7,400 direct labor hours. During the month, the company purchased 11,000 liters of the direct material at $4.25 per liter. The actual direct labor rate was $21.00 per hour and the actual variable overhead rate was $5.25 per hour. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. Required: Calculate the spending variances, price variances, and quantity variances for direct materials, direct labor, and variable manufacturing overhead
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
