Calculating Unknown Values for Direct Materials, Direct Labor Variances
Three Pigs Company manufactures cast-iron barbeque cookware. During a recent windstorm, it lost some of its cost accounting records. Three Pigs has managed to reconstruct portions of its standard cost system database but is still missing a few pieces of information.
| Direct Materials | Direct Labor |
Standard amount per pan produced | 2.5 lb. | 1.25 hr. |
Standard cost | $4.00 per lb. | $16.00 per hr. |
Actual amount used per pan produced | 2.4 lb. | 1.20 hr. |
Actual cost | $4.10 per lb. | $15.50 per hr. |
Actual number of pans produced and sold | 2,500 pans | 2,500 pans |
Direct materials price variance | ? |
|
Direct materials quantity variance | ? |
|
Direct materials spending variance | ? |
|
Direct labor rate variance |
| ? |
Direct labor efficiency variance |
| ? |
Direct labor spending variance |
| ? |
Required:
Use the information in the table to determine the unknown amounts. You may assume that Three Pigs does not keep any raw materials on hand.
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