Question Details	Asked By	Asked On
managerial accounting	windtalker	07/23/06
if direct materials 4.6 pounds at 2.50lb standard cost would be 11.50 if direct labor was 0.2 hours at std price or rate at 12.00 standard cost would be 2.40 during the month these were the following activities. a) 20000# of material were purchased at a cost of 2.35 per pound B) all of the material purchased ws used to produce 4000 units C) a total of 750 hours of direct labor time was recorded at a total labor cost of $10425 1> compute the direct materials price and quantity variances for the month 2> cpmpute direct labor rate and efficiency variances for the month
Answered By		Answered On
paraclete		07/23/06
without doing the math price variance = difference between standard price and actual times quantity quantity variance = (difference between units produced times standard quantity and acutal quantity used)times standard price Labour rate variance = (labour cost divided by labour hours){actual labour rate} less standard rate times actual hours efficiency variance = (quantity times stadard hours less actual hours)times standard rate

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