Reference no: EM133088312

Question - DEF operates several US manufacturing facilities, one of which produces only storage jars. The standard cost sheet for these jars calls for the following:

-direct labor hour @ $25/hour 0.5 pound of glass @ $0.12/pound

1 lid assembly @ $0.18/assembly

During the month of November, DEF produced 1,000,000 jars, which is a new production record. November production consumed 540,000 pounds of glass at a total cost of $75,600 and 1,001,000 lid assemblies at a total cost of $160,160. Production used 9,500 direct labor hours at a total cost of $242,250.

Required -

-Show calculations for the direct materials price variance and the direct materials quantity variance for EACH material.

-Show calculations for the direct labor rate variance and the direct labor efficiency variance.

-DEF's main supplier of the sand they use to make glass has just informed DEF that their cost will soon be rising to $0.20/pound due to supply and transportation issues. What changes, if any, should DEF make to their standard cost sheet for the storage jars in response to this information? Justify your answer.