Q: The following direct materials and direct labor data pertain to the operations of Engles Manufacturing Company for the month of August. Instructions (a) Compute the
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Instructions
(a) Compute the total, price, and quantity variances for materials and labor.
(b) Provide two possible explanations for each of the unfavorable variances calculated above, and suggest where responsibility for the unfavorable result might beplaced.
Costs Quantities Actual labor rate $13 per hour Actual hours incurred and usec 4,200 hours Actual materials price $128 peron Actual quantity of materials purchased and used 1,225 tons 4,300 hours $12 per hour Standard labor rate Standard materials price $130 per on Standard quantity of Standard hours used materials used 1,200 tons
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Step: 1
a Total materials variance AQ X AP 1225 X 128 156800 SQ X SP 1200 X 130 156000 800 U Materials price ... View full answer

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