Calculate direct materials cost and efficiency variances

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Question - Calculating materials and labor variances in preparing journal entries. This continues the Daniels consulting situation from problem P 22-57 of chapter 22. Assume Daniels has created a standard cost card for each job standard direct materials per job include 10 software packages at a cost of $900 per package. Standard direct labor cost per job include 105 hours at $100 per hour. Daniels plans on completing 12 jobs during March 2018.

Actual direct materials cost for March included 90 software packages at a total cost of $81,450. Actual direct labor cost included 110 hours per job at an average rate of $107 per hour. Daniels completed all 12 jobs in March.

Requirements -

1) Calculate direct materials cost and efficiency variances.

2) Calculate direct labor cost and efficiency variances. Write out the equation in words on the first line.

3) Prepare journal entries to record the use of both materials and labor for March for the company.

Reference no: EM133049939

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