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Quicksilver Compnay has set the follwoing standards for one unit of product:
Direct materialQuantity: 6.2 lbs per unitPrice per lb: $11 per lb
Direct LaborQuantity: 6 hrs per unitRate per hr: $23 per hr
Actual costs incurred in the production of 2,800 units were as follows:
Direct material: $194,350 ($11.50 per lb)Direct labor: $393,750 ($22.50 per hr)All Materials purchased were consumed during the period.
Required:Calculate the direct-material price and quantity variances, and the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.
Determine Profit by Using Absorption Costing Assuming the fixed overhead absorption rate was Ksh.3 per litre, then what would be the profit utilizing absorption costing? a)
I would like to know the solution on this one.
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