Taras Treasures makes Jewelry for sale to her customers. Tara has estimated the following STANDARD COSTS:
Direct Materials:
Standard Cost $ per Ounce x ounces of GOLD
Actual Cost: $ per Ounce x Ounces
Direct Labor:
Standard Cost: $ per hour and expects the employee will need hours per item
Actual Cost: $ per hour and actual hours was hours.
Required:
a Calculate the Variance Analysis for BOTH the Price Variance and the Efficiency Variance for the Direct Materials.
b Calculate the Variance Analysis for BOTH the Price Variance and Efficiency Variance for Direct Labor
Keiras Kites manufactures Kites and has estimated the following STANDARD COSTS:
Direct Materials:
Standard Cost: Ounces of Plastic x $ per Ounce.
Actual Cost: Ounces of Plastic at $ per Ounce.
Direct Labor:
Standard Cost: $ per hour x hours
Actual Cost: $ per hour x hours.
Required:
a Calculate the Variance Analysis for BOTH the Price Variance and the Efficiency Variance for the Direct Materials.
b Calculate the Variance Analysis for BOTH the Price Variance and Efficiency Variance for Direct Labor
