Thomas Enterprises purchased 57,500 pounds (cost = $362,250) of direct material to be used in...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Thomas Enterprises purchased 57,500 pounds (cost = $362,250) of direct material to be used in the manufacture of the company's sole product. According to the production specifications, each completed unit requires five pounds of direct material at a standard cost of $6.70 per pound. Direct materials consumed by the end of the period totaled 55,000 pounds in the manufacture of 11,200 finished units. An examination of Thomas' payroll records revealed that the company worked 22,700 labor hours (cost = $270,130) during the period, and specifications called for each completed unit requiring two hours of labor at a standard cost of $12.20 per hour. Use the Information to compute the following varlances. Thomas' direct-labor rate variance was: Multiple Choice $6.810 F. $6.810 U. $3.660 F $3,660 U None of the answers is correct
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: Flex AI - Your personal assistant for all your inquiries!
