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Flavor Rite Variance calculations
Please show step by step answer.
The standards for one carton of Flavor Rite are:Direct Materials 3.2lbs @ $6.00/lbDirect Labor 2.4 hrs. @$10.00/hr.
During the week ended May 17, the following activity took place:â?¢ 4,800 lbs. of raw material were purchased for inventory at a cost of $5.60 per pound;â?¢ 1,200 cartons of finished product were produced;â?¢ 4,020 lbs. of raw material were used;â?¢ 3,110 labor hours were worked at a total cost of $26,435.
Calculate each of the following variances:(a.) Raw materials purchase price variance.(b.) Raw materials usage variance.(c.) Direct labor rate variance.(d.) Direct labor efficiency variance:
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