Direct materials and direct labor:, Cost Accounting

Assignment Help:

McDaniel Company manufactures 100-pound bags of fertilizer that have the following unit standard costs for direct materials and direct labor:


Direct Materials (100 lbs. @ $1.00 per lb.) $100.00
Direct Labor (0.5 hours at $24 per hours ) $12.00
Total Standard prime Cost per 100 lb. bag $112.00
The following activities were recorder for October:
• 1,000 bags were manufactured.
• 95,000 lbs. of materials costing $76,000 were purchased.
• 102,500 lbs. of materials were used.
• $12,000 was paid for 475 hours of direct labor.
There were no beginning or ending work-in-process inventories.
Required:
A) Compute the direct material variances.
What is the Material Price Variance? Favorable or unfavorable?
What is the Material Usage Variance? Favorable or unfavorable?
Show Work for each.
B) Compute the Direct Labor Variances.
What is the labor rate variance? Favorable or unfavorable?
What is the Labor efficiency variance? Favorable or unfavorable?
Show work for each.
C) C. Give possible reasons for the occurrence of each of the preceding variances.

 


Related Discussions:- Direct materials and direct labor:

Standard costing and variance analysis using kaizen costing, Discuss how SD...

Discuss how SD can use standard costing and variance analysis to prepare meaningful reports when using Kaizen Costing. By the use of standard costing and variance analysis, fr

Illustration of overhead variance analysis, Illustration of Overhead Varian...

Illustration of Overhead Variance Analysis Again for intentions of our demonstrations in overhead variance analysis, we will suppose the given basic data for company in the pr

Irrelevant cost., what is irrelevant cost and give example

what is irrelevant cost and give example

Vorticella, Vorticella can first be seen by the naked eye, b.ut to study it...

Vorticella can first be seen by the naked eye, b.ut to study it place a prepared slide under the microscope. Focus it under low power, and observe it. You can see a large number of

Marginal costing and marginal cost, Marginal Costing and Marginal Cost ...

Marginal Costing and Marginal Cost Marginal Costing is an optionally method of costing to absorption costing , In marginal costing, merely variable costs are charged like a

Cost accounting, some clarificationon how to compute closing stock and open...

some clarificationon how to compute closing stock and openning stock using marginal costing technique and absorption.

Issuance of stock - shares of common stock, 1. Issuance of stock Prepa...

1. Issuance of stock Prepare journal entries to record the issuance of 100,000 shares of common stock at $20 per share for each of the following independent cases: a. Jacks

Calculate the manufacturing cost per unit, the following activities relatin...

the following activities relating to indirect production costs: Activity Activity Costs Cost Drivers Machine Setup $180,000 1,500 setup hours Materials Handling $50,000 12,500 poun

Mamufactuaring account, for the year ended31st dec 2008manufacturing accoun...

for the year ended31st dec 2008manufacturing accountshowing costof row material,manufacturing expenses and the cost of goods manufactured& tradind account where stock of row mater

Cost accounting as a service activity, critically explain cost accounting a...

critically explain cost accounting as 1. a service activity 2. a descriptive/analytical discipline 3. an information system

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd