Compute the total, price, and quantity variances for materials used and labor. Provide two possible explanations for each of the unfavorable variances calculated above, and suggest where responsibility for the unfavorable result might be placed.
Not what you're looking for?
The following direct materials and direct labor data pertain to the operations of Batista Manufacturing Company for the month of August.
Costs Quantities
Actual labor rate $13 per hour Actual hours incurred and used 4,250 hours
Actual materials Actual quantity of materials
price $128 per ton purchased and used 1,250 tons
Standard
materials price $130 per ton Standard quantity of
materials used 1,200 tons
Instructions:
a. Compute the total, price, and quantity variances for materials used and labor.
b. Provide two possible explanations for each of the unfavorable variances calculated above, and suggest where responsibility for the unfavorable result might be placed.
Purchase this Solution
Solution Summary
Notes and computations in Excel.
Purchase this Solution
Free BrainMass Quizzes
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Operations Management
This quiz tests a student's knowledge about Operations Management
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.