Question

The following data relate to product no. 33 of Volusia Corporation: 10 Direct labor standard: 5 hours at $14 per hour Direct labor used in production: 45,000 hours at a cost of $639,000 Manufacturing activity: 8,900 units completed The direct-labor rate variance is: Multiple Choice Ο $8,900F. Ο $8,90ου. Ο $9,00OF. Ο $9,000U. Ο None of the answers is correct.

Answer 1

Answer-10)- Labor rate variance =$9000 U.

Explanation:-

Direct Labor rate variance = (Standard rate – Actual rate) * Actual hours

= {($14 per hour – ($639000/45000 hours)}* 45000 hours   

= $9000 Unfavorable

12)- Answer- Direct Material Quantity variance = $750F.

Explanation-

Material Quantity variance = (Standard Quantity- Actual Quantity)*Standard price

=(23400 pounds – 23100 pounds)*$2.50 per pound

= $750 Favorable

Where:-

Standard Quantity = No. of pounds per unit*Actual output

= 3 pounds per unit *7800 units

= 23400 pounds

13)- Direct Material price variance= $5200 U.

Explanation-

1)-Material price variance = (Standard price – Actual price) * Actual quantity purchase

= ($2.50 per pound – $2.70 per pound)* 26000 pounds

= $5200 Unfavorable