An unfavourable materials efficiency variance may be the result of a. A greater than budgeted waste...
An unfavourable materials efficiency variance may be the result of
a. A greater than budgeted waste in manufacturing.
b. An increase in the cost per unit of raw materials.
c. A decrease in the cost per unit of raw materials.
d. A lower than budgeted waste in manufacturing.
Homework Answers
If actual quantity of material used in manufacturing process is more than budgeted quantity to be used, which is said to be unfavorable material efficiency variance.
An unfavorable material efficiency variance may be result of a greater than budgeted waste in manufacturing.
Because of use of more quantity of material than budgeted quantity of materials, which may leads to more waste in manufacturing.
Hence, Option "a" is correct.
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Direct labour (2 hours at $12
per hour)
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Variable manufacturing
overhead
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Fixed manufacturing
overhead
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kg
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Variable manufacturing
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Fixed manufacturing costs
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May I please get help understanding how to solve these
problems? Thank you!
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the current year:
Direct materials (2 kg of
plastic at $6 per kilogram)
$12.00
Direct labour (2 hours at $12
per hour)
24.00
Variable manufacturing
overhead
11.90
Fixed manufacturing
overhead
6.25
Total standard cost per
unit
$54.15
Actual costs for producing 2,740 units were as follows:
Direct materials used
5,560
kg
Direct materials purchased
(6,780 kg)
$40,002
Direct labour (6,880 hours)
$67,424
Variable manufacturing
costs
$32,600
Fixed manufacturing costs
$17,600
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What is the labour price variance?
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