Wright, Inc. manufactures a product that has the followingstandard costs:
Direct materials: 30 yards at $4.75 peryard $142.50
Direct labor: 7 hours at $18.00 perhour 126.00
Total $268.50
The following information pertains to July:
Direct material costs 20,000 yards at $4.50 per yard, or$90,000
(quantity purchased and quantity used are the same).
Direct labor: 4,500 hours at $18.25 per hour, or $82,125
Actual completed production: 650 units
Answer and Show Work:
Calculate the following variances and indicate whethereach variance is favorable or unfavorable using F for favorable andU for unfavorable.
Direct-material price | |
Direct-material quantity | |
Direct-labor rate | |
Direct-labor efficiency | |
