Reference no: EM132758289

Question -

1. Calculate DL rate and efficiency variances!

Direct labor: Standard quantity .2 hours; standard rate $12.00 per hour 750 hours of direct labor time recorded to produce 4000 units at a total labor cost of $10,425.

2. Calculate VOH rate and efficiency variances!

Predetermined VOH rate is calculated using direct labor hours as the cost driver.

VOH standards: .04 DLH required per order; VOH rate is $2.80 per DLH.

140,000 orders filled using 5800 DLH at a total VOH cost of $15,950.

3. Calculate DM price and quantity variance when quantity purchased is different from quantity used!

Direct materials: Standard quantity 4.6 pounds; standard cost $2.50 per pound

20,000 pounds of material purchased at a cost of $2.35 per pound; 18,000 pounds used to produce 4000 units.