Material and Labor Variances The following actual and standard cost data for direct material and...
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Accounting
Material and Labor Variances The following actual and standard cost data for direct material and direct labor relate to the production of 2,000 units of a product:
Actual Costs
Standard Costs
Direct material
7,800
lbs. @
$5.30
8,000
lbs. @
$5.10
Direct labor
12,400
hrs. @
$8.40
12,000
hrs. @
$8.70
Determine the following variances:
Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable.
Materials Variances
Actual cost:
Split cost:
Standard cost:
a. Materials price
FU
b. Materials efficiency
FU
Labor Variances
Actual cost:
Split cost:
Standard cost:
c. Labor rate
FU
d. Labor efficieny
FU
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