Business, 03.07.2020 22:01 gmoney1973

Levine Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. Direct materials (8 pounds at $2.40 per pound) $19.20
Direct labor (5 hours at $12.00 per hour) $60.00

During the month of April, the company manufactures 260 units and incurs the following actual costs.

Direct materials purchased and used (2,400 pounds) $6,240
Direct labor (1,310 hours) $15,458

Required:
Compute the total, price, and quantity variances for materials and labor.

Answers: 3

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Answers

Answer from: TeenageKicks9800

materials variances

Material price variance = $480 Unfavourable

Material quantity variance = $768 Unfavourable

Material total variance = $1248 Unfavourable

labor variances

Labor price variance = $262 Favourable

Labor quantity variance = $120 Unfavourable

Labor total variance = $142 Favourable

Explanation:

materials variances

Material price variance = (Aq × Ap) - (Aq × Sp)

= (2,400 × $2.60) - (2,400 × $2.40)

= $480 Unfavourable

Material quantity variance = (Aq × Sp) - (Sq × Sp)

= (2,400 × $2.40) - ((260× 8) × $2.40)

= $768 Unfavourable

Material total variance = Material price variance + Material quantity variance

= $480 Unfavourable + $768 Unfavourable

= $1248 Unfavourable

labor variances

Labor price variance = (Aq × Ap) - (Aq × Sp)

= (1,310 × $11.80) - (1,310 × $12.00)

= $262 Favourable

Labor quantity variance = (Aq × Sp) - (Sq × Sp)

= (1,310 × $12.00) - ((260 × 5) × $12.00)

= $120 Unfavourable

Labor total variance = Material price variance + Material quantity variance

= $262 Favourable + $120 Unfavourable

= $142 Favourable

Answer from: Quest

False according to edgenuity

Answer from: Quest

answer; marketing resource management;

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Levine Inc., which produces a single product, has prepared the following standard cost sheet for one...

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