Prime costs for Teagan's Toys to produce ping pong nets for table tops are: Actual materials...

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Prime costs for Teagans Toys to produce ping pong nets for table tops are: Actual materials purchases 320,000 pounds for $1,

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Answer 1

Answer #1

a. Materials price variance = (Standard price - actual price) x Material purchased
= {3.60 - ($1241600/320000)} x 320000 = $89600 Unfavorable

b. Materials quantity variance = (Standard quantity - actual quantity used) x standard price
= {(38000*8.5) - 285,000} x $3.60 = $136800 Favorable

c. direct material variance = 38000*8.5*3.60 - 1241600 = $78800 Unfavorable

d. Labor rate variance = (Standard rate - actual rate) x Actual hours used
= {16 - 15.12) x 100000 = $88000 Favorable

e. Labor efficiency variance = (Standard hours - actual hours) x Standard rate
= {(38000*2.5) - 100000} x $16 = $80000 Unfavorable

f. Direct Labor variance = 38000*2.5*16 - 100000*15.12 = $8000 Favorable

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Prime costs for Teagan's Toys to produce ping pong nets for table tops are: Actual materials...

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