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Category > Management Posted 12 Jan 2018 My Price 6.00

Schmidt Co

44.    LO.2 (DM & DL variances) Schmidt Co. has the following standard material and labor quantities and costs for one unit of Product SWK#468:

 

Material           1.85 pounds @ $3.50 per pound Labor   0.04 hours @ $12 per hour

During July, the purchasing agent found a “good deal” on the raw material needed for Product SWK#468 and bought 100,000 pounds of material at $3.15 per pound. In July, the company produced 48,000 units of Product SWK#468 with the following material and labor usage:

 

Material                    95,000 pounds

Labor                       2,200 hours @ $12.10 (due to a renegotiated labor contract)

 

a.     What is the standard quantity of material and the standard labor time for July?

b.    Calculate the material and labor variances for July.

c.     Did the purchasing agent make a “good deal” on the raw material? Explain.

 

Answers

Maurice Tutor
(5)
Status NEW Posted 12 Jan 2018 11:01 PM My Price 6.00

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