Explain results The standards for one case of Springfever Tonic are: Direct materials . ....
90.2K
Verified Solution
Link Copied!
Question
Accounting
Explain results The standards for one case of Springfever Tonic are: Direct materials . . . . . . . . . . . . . . . . . . 8 lbs. @ $3.00/lb. = $24 Direct labor . . . . . . . . . . . . . . . . . . . . . 6 hrs. @ $1 0.00/hr. = 60 Variable overhead (based on direct labor hours) . . . . . . . . . . . . 6 hrs. @ $5.00/hr. = 30 During the week ended April 27, the following activity took place: 14,800 lbs. of raw materials were purchased for inventory at a cost of $2.97 per pound. 2,000 cases of ?nished product were produced. 16,600 lbs. of raw materials were used. 11,600 direct labor hours were worked at a total cost of $121,800. $60,900 of actual variable overhead costs were incurred. Required: Calculate each of the following variances and provide plausible explanations for the results: a. Price variance for raw materials purchased. b. Raw materials usage variance. c. Direct labor rate variance. d. Direct labor ef?ciency variance. e. Variable overhead spending variance. f. Variable overhead ef?ciency variance
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
