Reference no: EM133162879
Question - Plato Company began operations on June 1, 2024. For its first month of operations, Plato Company established the following standards for one unit of its single product
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standard quantity
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standard price
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direct materials
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7 pounds
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$14 per pound
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direct labor
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8 hours
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$17 per hour
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variable overhead
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8 hours
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$11 per hour
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Plato Company reported the following information for June:
1. 7,000 pounds of direct materials were purchased at a total cost of $113,750.
2. 5,400 direct labor hours were worked at a total cost of $75,600.
3. The variable overhead cost for the month totaled $52,950.
4. 460 units were produced.
5. At June 30, Plato Company had 2,300 pounds of direct materials on hand.
Required -
1. Calculate the direct material price variance for June.
2. Calculate the direct material quantity variance for June.
3. Calculate the direct labor efficiency variance for June.
4. Calculate the variable overhead spending variance for June.