Standard Costing-Example Problem The Dine Her Company assistance in calculating certain production variances for its...
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Standard Costing-Example Problem The Dine Her Company assistance in calculating certain production variances for its specializes in making one bottle of this cologne. uses a standard system for cost control purposes. The company seeks your first month of operations. The company of Yew and has thntard cost information for Direct Materials (Kumquat juice) 10 o Direct Labor Standard Costs per Unit $ 5.00 7.50 .50 per oz. 1.5 hrs.@$5 per hr. During the past month the company budgeted that 1,200 bottles would be produced; however, only 1,100 actually were completed. In completing these bottles the company used 10 workers with each l working 160 hours for the month.The total direct labor costsan addition, the com 8,800 for the month. In and at the end of the month only 8,600 oz. were left. Required: Compute the following: 1. Material Price Variance 2. Material Quantity Variance MPV (AP SP) (.5550 20.000 4. Labor Efficiency Variance LEV- (AH-SH) 3. Labor Rate Variance ctol h 5. Total Materials Variance (MPV+MQV) 6. Total Labor Variance (LRV+LEV) 7. Of what value are the total material and total labor variances
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