Variances
Not what you're looking for?
World Wide Produts has developed the following standards for one of its products:
Direct materials 25 pounds at $4 per pound
Direct labor 8 hours at $10 per hour
The following activity was recorded for the production of 12,000 units during the month of August.
Materials purchased 355,000 pounds at $4.15 a pound
Materials used 305,000 pounds
Direct labor 95,400 hours at $10.75 an hour
a. Compute the materials price variance.
b. Compute the materials usage variance.
c. Compute the labor rate variance.
d. Compute the labor efficiency variance.
Purchase this Solution
Solution Summary
Computes price variance, Usage variance, Rate variance, and Efficiency variance.
Purchase this Solution
Free BrainMass Quizzes
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.