standard materials cost

Control Limits During the last 6 weeks, the actual costs of labor for Solsana Company were as follows: Week 1 $38,500 Week 4 $45,600 Week 2 $40,000 Week S $48,000 Week 3 $42,000 Week 6 $51,000 The standard materials cost for each week was $40,000 with an allowable deviation of $5,000. Required: Review the graphs below. Control Chart $55,000 $50,000 $45,000 Actual Costs $40,000 $35,000 $30,000 0 1 2 3 5 Weel b. $70,000 $65,000 $60,000 Upper control limit $55,000 $50,000 Lower control limit $45,000 $40,000 0 1 2. 3 7 C. $70,000 $65,000 $60,000 Upper control Limit $55,000 550,000 $40,000 0 d. $70,000 $65,000 $60,000 Upper control mit $55,000 . $50,000 Lower control limit $45,000 $40,000 2 7 1 a. Select the letter adjacent to the graph which represents the actual costs over time against the upper and lower limits. a b. The variances that exceed the upper limit of should be investigated Feeds