Direct Material and Direct Labor Variances
Not what you're looking for?
The following standards were developed for a line of lightposts:
Standard Inputs Expected
for Each Unit of Output Standard Price per
Achieved Unit of Input
Direct materials 5 pounds $10 per pound
Direct labor 5 hours $25 per hour
During April, 550 lightposts were scheduled for production. However, only 525 were actually produced.
Direct materials purchased and used amounted to 2,750 pounds at a unit price of $8.50 per pound. Direct labor actually paid was $26.00 per hour, and 2,850 hours were used.
1. Compute the standard cost per lightpost for direct materials and direct labor.
2. Compute the price variances and usage variances for direct materials and direct labor.
3. What clues for investigation are provided by the variances?
Purchase this Solution
Solution Summary
This solution is comprised of a detailed explanation to compute the standard cost per lightpost for direct materials and direct labor, compute the price variances and usage variances for direct materials and direct labor, and answer what clues for investigation are provided by the variances.
Solution Preview
The following standards were developed for a line of lightposts:
Standard Inputs Expected
for Each Unit of Output Standard Price per
Achieved Unit of Input
Direct materials 5 pounds $10 per pound
Direct labor 5 hours $25 per hour
During April, 550 lightposts were scheduled for production. However, only 525 were actually produced.
Direct materials purchased and used amounted to 2,750 pounds at a unit price of $8.50 per pound. Direct ...
Purchase this Solution
Free BrainMass Quizzes
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
Lean your Process
This quiz will help you understand the basic concepts of Lean.
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.