Question

Information on Pruitt Company's direct-material costs for the month of July 2005 was as follows: 30,000 units $2.75 Actual quantity purchased Actual unit purchase price Materials purchase-price variance —unfavorable (based on purchases) Standard quantity allowed for actual production Actual quantity used $1,500 24,000 units 22,000 units For July 2005 there was a favorable direct-materials efficiency variance of sooo $7,950. $5,500. $5,400. $5,600. none of the above ACCT1112_2014S1 Revision Information for Garner Company's direct-labor costs for the month of September 2005 was as follows: Actual direct-labor hours Standard direct-labor hours Total direct-labor payroll Direct-labor efficiency variance-favorable 34,500 hours 35,000 hours $241,500 $ 3,200 What is Garner's direct-labor price (or rate) variance? $21,000 favorable $21,000 unfavorable $17,250 unfavorable $20,700 unfavorable none of the above

Can you show me how to get each answer?

Answer 1

② Pruitt company Actual price [ 39000 $275] lesso unfavorable price variance materials at Standard 82,500 1,500 81,000 Standard price per unit = 81,000 - $2.70 30,000 Actual quantity = 22,000 units Standard Quantity = 24,000 units Efficiency variance 2000 units favorable direct - material copiciency variance = 2000 x $2070 = ($5400 FT Garner's Company Actual direct labour cost. Standard direct labour cost [34,500 x $6.40] Direct labour price variance $ 241,500 $ 220, 800 $ 20,700 u * Standard rate = 3200 35,000 – 34,500 = $6-40