Total price and quantity variances for materials and labor
Haslett Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product.
Direct materials (8 pounds at $2.75 per pound) $22
Direct labor (3 hours at $16.00 per hour) $48
During the month of April, the company manufactures 231 units and incurs the following actual costs.
Direct materials purchased and used (1,930 pounds) $8,106
Direct labor (700 hours) $10,150
Total materials variance $ Favorable/Unfavorable
Materials price variance $ Unfavorable/Favorable
Materials quantity variance $ Favorable/Unfavorable
Total labor variance $ Favorable/Unfavorable
Labor price variance $ Favorable/Unfavorable
Labor quantity variance $ Favorable/Unfavorable
Compute the total, price, and quantity variances for materials and labor. (Round unit costs to 2 decimal places, e.g. 10.50 and all other computations and final answers to 0 decimal places, e.g. 125.)© BrainMass Inc. brainmass.com October 17, 2018, 1:17 am ad1c9bdddf
The solution explains how to calculate price and quantity variances for material and labor
Total materials variance, the price, and quantity variances
The standard cost of Product B manufactured by TLC Company includes 3 units of direct materials at $6.20 per unit. During June, 28,000 units of direct materials are purchased at a cost of $5.83 per unit, and 28,000 units of direct materials are used to produce 9,000 units of Product B.
Compute the total materials variance and the price and quantity variances:
total materials variance:
Price Material variance:
Material Quantity variance:
Repeat the question above, assuming the purchase price is $6.45 and the quantity purchased and used is 26,200 units.View Full Posting Details