Question

Seaside Company produces picture frames. During the year 190,000 picture frames were produced. Materials and labour standards for producing the picture frames are as follows: Direct materials (2 pieces of wood @ $2.25) Direct labour (2 hours @ $10) $4.50 $20.00 Seaside purchased and used 400,000 pieces of wood at $2.00 each and its actual labour hours were 360,000 hours at a wage rate of $10.50. 16. What is the materials usage variance? $112,500 F $112.500 U $45,000 F $45,000 U " 17. What is Seaside's total labour variance? $20,000 F $20,000 U $112,500 F $120,000 U 10.50

Answer 1

Material usage variance Chuv) Actual muv = ( Standard qty for actual . production Standard price - [ @190,000x2) - Hooo00] x 2.25 - $ 45,000 u - * 190,000 picture frames were produced As per Standard , a pieces of wood i s required for 1 picture frame - D. $ 45,000 u

Total direct labour variance = (standard (Actual rate peruar hours sate Standard hour for actuar Production a [lox (190,000x2 ] - (360.000 x 10,5) = $20,000 F