Question

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Problem 2 The following information is available for the month of March for the Vatt Manufacturing Company Standard: Material: 2 pounds per unit @ $5.80 per pound Labor. 3 direct labor hours per unit @ $10.00 per hour Actual: Material: purchased 4,250 pounds @ $5.50 per pound Used 4,000 pounds Labor: 6,300 direct labor hours at $10.25 per hour During March, Vatt produced 2,100 units. Compute all costs & variances for DM & DL.

Answer 1

Answer- 2 Compute all costs & variance for DM: xatual Qty price price -standard Attuad material price variance = 1,275 (F). (5.5-5:8) x 4,250 = . meterial price variance 41,275 (favourable). istandard at (actual X standard frice D'ivect material varianee. = 4,250- 4200) x 5.% - 50X 5.8 a90 (unfavourable) . varianee =$290 Cunfavonable} . Dirveet material for DL '- Compeute alt costs & vari once kabor pice verianee = (Actual patce- stardard piex ackuel houy - (o.a5 - 10) x 6300 Dirert = 0.95 X6300 $ 1,575 (U). .Direet labor pice variance = $ 1,575 lun.favourable);

Variance = (acfual hours -standard houss) Direet dabor xstandand price -(6200 -6300) xrò O XIO = o(u). Direet labor elbicieney vavianee - f0 (unfaaurable).