A certain department produced 16,000 units of a product that had a standard materials cost...
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Accounting
A certain department produced 16,000 units of a product that had a standard materials cost of two pounds at $1.60 per pound and a standard labor cost of two hours per unit at $9.40 per hour. Actual materials purchased and used amounted to 32,200 pounds at $1.70 per pound, while actual direct labor consisted of 31,000 hours at a total labor cost of $302,000. a. Compute the total materials variance, the materials price variance, and the materials usage variance. b. Compute the total labor variance, the labor rate variance, and the labor efficiency variance.
c. Use T-accounts to record the purchase of materials, transfer of materials to work in process, and apply direct labor costs to work in process (including closing the variance accounts).
(Use the formats from my homework solutions from chapter 23 as a template.) (Don't forget the total variances. Don't forget to indicate if variances are favorable or unfavorable.)
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