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28 Sep 2019
topaz company makes one product and has set the followingstandards for materials and labor:
direct materials direct labor
standard quantity or hours per unit ? pounds 2.5 hours standard price or rate ? per pound $9.00 per hour standard cost per unit ? $22.50
during the past month, the company purchased 6,000 pounds ofdirect materials at a cost of $16,500. all of this material wasused in the production of 1,400 units of product. direct labor costtotaled $28,500 for the month. the following variances have beencomputed:
materials quantity variance $1,200 U total materials spending variance $300 F labor efficiency variance $4,500 F
for direct labor:
a. compute the actual direct labor cost per hour for themonth
b. compute the labor rate variance
topaz company makes one product and has set the followingstandards for materials and labor:
direct materials | direct labor | |
standard quantity or hours per unit | ? pounds | 2.5 hours |
standard price or rate | ? per pound | $9.00 per hour |
standard cost per unit | ? | $22.50 |
during the past month, the company purchased 6,000 pounds ofdirect materials at a cost of $16,500. all of this material wasused in the production of 1,400 units of product. direct labor costtotaled $28,500 for the month. the following variances have beencomputed:
materials quantity variance | $1,200 U |
total materials spending variance | $300 F |
labor efficiency variance | $4,500 F |
for direct labor:
a. compute the actual direct labor cost per hour for themonth
b. compute the labor rate variance
Bunny GreenfelderLv2
28 Sep 2019