Quantum produced a product with the following standard and actual costs per unit for last period...

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Quantum produced a product with the following standard and actual costs per unit for last period during which 1,000 units were actually produced. Standard Actual Direct materials Standard - 2 kg at S2.50/kg Actual - 2.1 kg at $2.60/ kg $5.00 $5.46 Direct labor Standard – 1.5 hours at $6.00 / hour Actual – 1.4 hours at $6.50/ hour $9.00 $9.10 Required: Based on the above information, calculate the following variances indicating whether they are Favorable (F) or Adverse (A): (a) (i) Material Price Variance (ii) Material Quantity Variance (iii) Direct Labor Rate Variance (iv) Direct Labor Efficiency Variance (b) Give ONE possible reason for each of the following variances: (i) Favorable Material Price Variance (ii) Unfavorable Material Quantity Variance Unfavorable Labor Rate Variance (iii) (iv) Favorable Labor Efficiency Variance Quantum produced a product with the following standard and actual costs per unit for last period during which 1,000 units were actually produced. Standard Actual Direct materials Standard - 2 kg at S2.50/kg Actual - 2.1 kg at $2.60/ kg $5.00 $5.46 Direct labor Standard – 1.5 hours at $6.00 / hour Actual – 1.4 hours at $6.50/ hour $9.00 $9.10 Required: Based on the above information, calculate the following variances indicating whether they are Favorable (F) or Adverse (A): (a) (i) Material Price Variance (ii) Material Quantity Variance (iii) Direct Labor Rate Variance (iv) Direct Labor Efficiency Variance (b) Give ONE possible reason for each of the following variances: (i) Favorable Material Price Variance (ii) Unfavorable Material Quantity Variance Unfavorable Labor Rate Variance (iii) (iv) Favorable Labor Efficiency Variance

Answer rating: 100% (QA)

Solutio n a1 Material price variance actual quantitystandard priceActual quantityactual price Materi... View the full answer