Compute price amp quantity variances for materials labor

Reference no: EM13361311

Compute price & quantity variances for materials, labor, OH

Headsmart manufactures headphone cases. During September 2011, the company produced 106,000 cases and recorded the fallowing cost data:

Standard Cost Information
Direct Materials 2 parts $0.17 per part
direct Labor 0.02 hours $9.00 per hour
variable manufacturing overhead 0.02 hours $10,00 per hour
fixed manufacturing overhead ($32,640 for static budget volume of 96,000 units
and 1,920 units and 1,920 hours, or $17 per hour)

Actual Information

Direct materials (265,000 parts were purchased @ $0.22 per part, 215,000 parts
were used)
Direct labor (1,720 hours @ $9.10 per hour+ $15,652)
Manufacturing overhead $60,500 (30 percent was fixed)

Required:

a) Evaluate the price variances of price and quantity for: materials, labor, variable overhead and fixed overhead and if they are favorable or unfavorable.
b) Comment on the variances.

Reference no: EM13361311

Questions Cloud

Decline of labor strikes in the united statescauses of the : decline of labor strikes in the united statescauses of the decline of labor strikes in the united statesthe main points

Explain the labor market compensation analystas a : explain the labor market compensation analystas a compensation analyst for all sate insurance company which is located

Westward expansion and industrialization1 what were some of : westward expansion and industrialization1. what were some of the inventions critical for agricultural settlement of the

Capital investment v college education affect the marginal : capital investment v college education affect the marginal physical product of laborhow does capital investment affect

Compute price amp quantity variances for materials labor : compute price amp quantity variances for materials labor ohheadsmart manufactures headphone cases. during september

The united farm workers wants strawberry pickers to join : the united farm workers wants strawberry pickers to join their union. they hope then to convince consumers to buy only

Change to marginal amp average productivity technological : change to marginal amp average productivity technological innovation impact to costs1. explain what would be expected

Find the political ideology and how it related to : find the political ideology and how it related to international business? please explain in full

Direct labour efficiency varianceactual dl hrs : direct labour efficiency varianceactual dl hrs 20916standard dl hrs 22035unfavorable dl rate variance 3234total dl cost

User Account

All Pages