Maurice Tutor

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Category > Management Posted 12 Jan 2018 My Price 9.00

Cornerstone Printing Company

Direct Materials and Direct Labor Variances

At the beginning of June, Cornerstone Printing Company budgeted 20,000 books to be printed in June at standard direct materials and direct labor costs as follows:

Direct materials $24,000
Direct labor 19,200
Total $43,200

The standard materials price is $0.60 per pound. The standard direct labor rate is $12.00 per hour. At the end of June, the actual direct materials and direct labor costs were as follows:

Actual direct materials $21,800
Actual direct labor 17,400
Total $39,200

There were no direct materials price or direct labor rate variances for June. In addition, assume no changes in the direct materials inventory balances in June. Cornerstone Printing Company actually produced 17,600 units during June.

Determine the direct materials quantity anddirect labor time variances. Use the minus sign to enter favorable variances as negative numbers.

Direct materials quantity variance $___________ Unfavorable

Direct labor time variance $ Unfavorable

Answers

Maurice Tutor
(5)
Status NEW Posted 12 Jan 2018 11:01 PM My Price 9.00

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