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:

Sales budget, Sales Budget It provides volume of sales and sales mix o...

Sales Budget It provides volume of sales and sales mix of the recent operations. The sales forecast is initially prepared and upon completion the sales budget is finalized. Th

Wages and salaries, Given the information that follows, prepare a cash budg...

Given the information that follows, prepare a cash budget for the XYZ Store for the first six months of 2010. All prices and costs remain constant. Sales are 90% for cre

Calculate the reduction in failure costs per unit, Each unit of a product r...

Each unit of a product requires four components. The average number of components is 4.25 due to component failure. Purchasing higher quality components can reduce the average numb

Marginal & Absorption, Ask quCalculate the standard production cost per uni...

Ask quCalculate the standard production cost per unit and standard profit per unit using Absorption costing principles. ii. Prepare a profit statement for January and February (se

Distinguish between the products of different producers, The text states th...

The text states that four conditions are necessary for the existence of a perfectly competitive market. Discuss in your own words each one. a)   Numerous participants: Roughly

Computing information, This coursework is intended to help you develop your...

This coursework is intended to help you develop your understanding of shell scripting in both a Windows and Unix environment. You should undertake this coursework in groups cons

Cost Estimation, On a New product development process of making a new S3 ST...

On a New product development process of making a new S3 STORAGE SIM card phone storage device for end users, forecast the following With full working and tabulations; a) With fu

Overhead variance, The following information is for the third quarter of th...

The following information is for the third quarter of this year: Planned Actual Production 92,000 units 87,000 units Direct labor hours 506,800 DL hrs 380,000 DL hrs Fixed manuf

Accounting records - nature and purpose of cost accounting, Accounting Reco...

Accounting Records - Nature and Purpose of Cost Accounting The quantitative information employed in the management and cost accounting systems can be obtained from with two ac

Angle of incidence, ANGLE OF INCIDENCE:   It is an angle that is created wh...

ANGLE OF INCIDENCE:   It is an angle that is created when the entire sales line intercepts the entire cost line from below in the breakeven chart. It is inferred that higher the an

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