Maurice Tutor

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Category > Accounting Posted 17 Aug 2017 My Price 5.00

Party Balloons Company

Direct Materials and Direct Labor Variances

p2. Party Balloons Company produces mylar balloons. The company’s direct materials standards for its deluxe balloon include 3 ounces of mylar. Standard prices for the year were $0.030 per ounce. Direct labor standards for the deluxe balloon specify 0.01 hour of direct labor at a standard direct labor rate of $18 per hour.

During January, the company made 200,600 deluxe balloons. Actual production data follow.

Direct materials                                   602,000 ounces @ $0.028 per ounce

Direct labor                                         2,000 hours @ $18.50 per hour

 

reQUIreD

1.    Compute the direct materials price and quantity variances.

2.    Compute the direct labor rate and efficiency variances.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Answers

Maurice Tutor
(5)
Status NEW Posted 17 Aug 2017 05:08 PM My Price 5.00

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