Calculation of labor variancesthe following direct

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Calculation of Labor Variances.

The following direct materials and labor data pertain to the operations of Solario Manufacturing Company for the month of August.

Costs

Actual labor rate

$13 per hour

Actual material price

$128 per ton

Standard labor rate

$12 per hour

Actual material price

$130 per ton

 

Quantities

Actual hours incurred and used

4,200 hours

Actual quantity of materials purchases and used

1,225 tons

Standard hours used

4,300 hours

Standard quantity of materials used

1,200 tons

 

 Instructions:

Provide two possible explanations for each of the unfavorable variances calculated in E25-8 (a), and suggest where responsibility for the unfavorable result might be placed. Refer to E25-8 (a).

Reference no: EM13356316

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