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Category > Accounting Posted 19 Aug 2017 My Price 7.00

Shults Company

Exercise 10-33  Materials and Labor Variances

At the beginning of the year, Shults Company had the following standard cost sheet for one of its plastic products:

 

 

Direct materials (6 lbs. @ $5)

$30.00

Direct labor (2 hrs. @ $12)

24.00

Standard prime cost per unit

$54.00

 

The actual results for the year are as follows:

a.       Units produced: 350,000.

b.       Materials purchased: 1,860,000 pounds @ $5.10.

c.        Materials used: 1,850,000 pounds.

d.       Direct labor: 725,000 hours @ $11.85.

 

Required:

1.       Compute price and usage variances for materials.

2.       Compute the labor rate and labor efficiency variances.

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Maurice Tutor
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Status NEW Posted 19 Aug 2017 02:08 PM My Price 7.00

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