Calculate the total material and labour variance for month

Assignment Help Accounting Basics

Reference no: EM132700686

A local manufacturing firm constructs water tanks for suburban households. Budgeted costs for the company's basic water tank are as follows:

Standard Usage Standard Price

Direct Labour 2 hrs (per unit) $27 (per hr)

Direct Material 10 lineal metres (per unit) $6 (per mt)

Staff at the firm produced 60 tanks during the last month. Direct Labour was paid during the month was 2,924 with workers logging 103 direct labour hours. In making the 60 water tanks 491 lineal metres of direct materials was consumed which were purchased for $2,123.

Problem 1: Calculate the total material and labour variance for the past month.

Reference no: EM132700686

Questions Cloud

Assignment on ethical decision making : 1. How would you handle a situation involving dating someone you also work with?

Calculate the portion of the cost allocable to the land : The land is appraised at $50,000, and the building at $250,000. If the cost of the property is $264,000 in total, then calculate the portion of cost allocable

What is meant by illusions of competence in learning : What is meant by illusions of competence in learning? What is your own most common illusion of competence in learning?

Which costs is a period cost for a manufacturing company : Which costs is a period cost for a manufacturing company? staff welfare for factory employees. / insurance on factory equipment

Calculate the total material and labour variance for month : A local manufacturing firm constructs water tanks for suburban households. Calculate the total material and labour variance for the past month.

Subject-develop and implement a business plan : What are three reasons why an organisation should review their strategic, business and operational plans?

Determine the beginning inventory : The following balances were taken from the accounts of Williams Company: Sales $70,000. Determine the beginning inventory

Describe the role played by tools in pdca : Continuous improvement tools ensure that there is a proper control of the processes involved in producing a quality product or providing a quality service.

Determining the expected value of business : Manuela is considering starting a company. She estimates a 10% chance of earning $1000000; 40% chance of earning $1000000 and 50% chance of loosing

User Account

All Pages