Explore BrainMass

Explore BrainMass

    Material and Labor Price Variance Standard Costing

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    10-35
    Part of your company's accounting database was destroyed when Godzilla attacked the city. You have been able to gather the following data from your files. Reconstruct the remaining information using the available data. All of the raw material purchased during the period was used in production. (Hint: it is helpful to solve for the unknowns in the order indicated by the letters in the following table.)

    Direct Material Direct Labor
    Standard price or rate per unit of input $16 per pound e
    Standard quantity per unit of output c f
    Actual quantity used per unit of output a 3.5 hours
    Actual price or rate per unit of input $14 per pound $21 per hour
    Actual output 20,000 units 20,000 units
    Direct material price variance $120,000 F ?
    Direct material quantity variance b ?
    Total of direct material variances $40,000 F ?
    Direct labor rate variance ? d
    Direct labor efficiency variance ? $200,000 F
    Total of direct labor variances ? $130,000 F

    © BrainMass Inc. brainmass.com October 1, 2020, 7:04 pm ad1c9bdddf
    https://brainmass.com/business/labour-management-and-relations/material-and-labor-price-variance-standard-costing-90668

    Attachments

    Solution Preview

    Direct Material Direct Labor
    Standard price or rate per unit of input $16 per pound e
    Standard quantity per unit of output c f
    Actual quantity used per unit of output a 3.5 hours
    Actual price or rate per unit of input $14 per pound $21 per hour
    Actual output 20,000 units 20,000 units
    Direct material price variance $120,000 F ?
    Direct material quantity variance b ?
    Total of direct material variances $40,000 F ?
    Direct labor rate variance ? d
    Direct labor efficiency variance ? $200,000 F
    Total of direct labor variances ? $130,000 ...

    Solution Summary

    This solution is comprised of a detailed explanation to answer the request of the assignment in text file.

    $2.19

    ADVERTISEMENT