Flavor Rite Variance Calculations
Not what you're looking for?
Please show step by step answer.
The standards for one carton of Flavor Rite are:
Direct Materials 3.2lbs @ $6.00/lb
Direct Labor 2.4 hrs. @$10.00/hr.
During the week ended May 17, the following activity took place:
â?¢ 4,800 lbs. of raw material were purchased for inventory at a cost of $5.60 per pound;
â?¢ 1,200 cartons of finished product were produced;
â?¢ 4,020 lbs. of raw material were used;
â?¢ 3,110 labor hours were worked at a total cost of $26,435.
Calculate each of the following variances:
(a.) Raw materials purchase price variance.
(b.) Raw materials usage variance.
(c.) Direct labor rate variance.
(d.) Direct labor efficiency variance:
Purchase this Solution
Solution Summary
This solution is comprised of a detailed explanation to calculate each of the following variances:
(a.) Raw materials purchase price variance.
(b.) Raw materials usage variance.
(c.) Direct labor rate variance.
(d.) Direct labor efficiency variance.
Solution Preview
See attached file for clarity.
Variance calculation
The standards for one carton of Flavor Rite are:
Direct Materials 3.2lbs @ $6.00/lb
Direct Labor 2.4 hrs. @$10.00/hr.
During the week ended May 17, the following activity took place:
â?¢ 4,800 lbs. of raw material were purchased for inventory at a cost of $5.60 per pound;
â?¢ 1,200 cartons of finished product were produced;
â?¢ 4,020 lbs. of raw ...
Purchase this Solution
Free BrainMass Quizzes
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
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.
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
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.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)