Reference no: EM13949156
Zawatsky Products produces instructional aids. Among the company's products are whiteboards, which use colored markers instead of chalk. They are particularly pop- ular for conference rooms in educational institutions and executive offices of large corporations. The standard costs of materials and labor for this product follow:
Direct materials 11 lbs. @ $7.95 Direct labor 4 hrs. @ $9.40
During the first month of the year, 20,100 boards were produced. Information con- cerning actual costs and usage of materials and labor follows:
Materials purchased 222,500 lbs. @ $8.05 Materials used 220,400 lbs.
Direct labor 79,900 hrs.; total cost: $759,050
Required
1. Compute the materials price and usage variances.
2. Compute the labor rate and efficiency variances.
3. Prepare journal entries for all activity relating to materials and labor for the month.
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