User Account

All Pages

Calculate the direct labour price variance

Assignment Help Accounting Basics
Reference no: EM132772134

Question - Pratt Industries manufactures and sells one type of glass bottle. The company uses a standard costing system to control its production costs. The following information was available for the month of October:

Production cost Budget Actual

Direct material used 12,000 kg 10,450 kg

Direct labour 14,500 hours at $8.60/hr 15,260 hours at $8.40/hr

A total of 8,900 kg of raw material was purchased during the month, at a price of $3.60 per kg. The standard cost of raw material is $3.50 per kg.

Material price variances are calculated on purchase.

Required -

(a) Calculate the following for the month of October:

(i) Direct material price variance (on purchase) and direct material efficiency variance

(ii) Direct labour price variance and direct labour efficiency variance

(b) Provide TWO possible reasons for the direct labour price variance and TWO possible reasons for the direct labour efficiency variance.

(c) Supermarkets should benchmark their costs against Aldi supermarkets because they have the lowest costs. Do you agree? Explain your answer.

Reference no: EM132772134

Questions Cloud

What the safety stock for bond chemical : The lead time for each order is six weeks and the economic order quantity is 160 tonnes. What the safety stock for Bond's chemical
Can you think of how ms excel could be used : Can you think of how MS Excel could be used in addiitona to having a financial application. Read up on exporting (hint).
Business intelligence to gain dominance : Search for a "Fortune 1000" company that has been successfully integrated Bid Data Analytics with their business Intelligence to gain dominance
Would you consider sales as a part of business strategy : 1. Would you consider sales as a part of business strategy? 2. How should company strategy be used in developing the sales structure?
Calculate the direct labour price variance : A total of 8,900 kg of raw material was purchased during the month, at a price of $3.60 per kg. Calculate the direct labour price variance
Elements of the environment : Why is it so important for managers to check up on all elements of the environment? Which one of the environment elements do you think is the most important to
Mention three early written forms of communication : b) Discuss ways through which the modern society has benefited from the development in Telecommunications.
Blockchain with cryptocurrency bitcoin : The vast majority of the population associates Blockchain with cryptocurrency Bitcoin; however, there are many other uses of blockchain;
Global economy : Today's Global Economy is very top-down driven with the government making all the decisions and regulations as it relates to doing business globally.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much may be paid for each scarf not yet purchased

the item is to retail at $16.95 each with a planned markup of 54%. if the cost for each of 2,100 scarves is $8.75, how much may be paid for each scarf not yet

  Calculate the cost of goods sold if aircard uses fifo lifo

Aircard Corporation tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period as if it uses a periodic inventory system. Given the following information, calcula..

  Prepare entries related to the life insurance for the year

On January 2, 2019, Prepare entries related to the life insurance for the year 2019-2022. What is the gain on life insurance settlement?

  What amount should tack report as a prior period adjustment

tack reported a retained earnings balance of 150000 at dec 312007.in june 2008 tacks internal audit staff discovered

  Find which is the most beginning of fraud process

Which is the most beginning of fraud process? Which A data flow diagram (DFD) is composed of the basic elements? Data sources and destinations

  How large should Wei dividend payout ratio be next year

According to the residual distribution model (assuming all payments are in the form of dividends), how large should Wei's dividend payout ratio be next year

  Record income tax expense and deferred income taxes

(Two Temporary Differences, Tracked through 3 Years, Multiple Rates) Taxable income and pretax financial income would be identical for Huber Co. except.

  How do managers determine what the standard cost should be

What are some advantages and disadvantages of standard costs? How do managers determine what the standard cost should be

  How much profit is Pivot Inc making on this inventory

Pivot Inc uses a markup of 45% of cost on all merchandise it sells. Overhead costs are 20% of sales. How much profit is Pivot Inc making on this inventory

  Construct and use a cash budget

Prepare the Wang cash budget for 2014. Date the budget simply "2014" and denote the beginning and ending cash balances as "beginning" and "ending." Assume the company expects 2014 to be the same as 2013, but with the following changes:

  Prepare an estimate of the resources

Prepare an estimate of the resources (operational, human, and length of time) that are needed to implement each of these recommendations.

  Give the name of the account being debited or credited

For each transaction, give (a) the name of the account being debited or credited, (b) the basic account type (A, L, SE, R, E), (c) whether the account is increased (1) or decreased (2) due to the transaction, and (d) whether the account normally hold..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd