Problem

Calculating Unknown Values for Direct Materials, Direct Labor VariancesThree Pigs Company...

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.

Step-by-Step Solution

Request Professional Solution

Request Solution!

We need at least 10 more requests to produce the solution.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the solution will be notified once they are available.
Add your Solution
Textbook Solutions and Answers Search