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Homework answers / question archive / The following data relate to direct materials costs for February: ??Materials cost per yard: standard, $2

The following data relate to direct materials costs for February: ??Materials cost per yard: standard, $2

Accounting

The following data relate to direct materials costs for February:

??Materials cost per yard: standard, $2.00; actual, $2.10

Standard yards per unit: standard, 4.5 yards; actual, 4.75 yards

Units of production: 9,500

?Calculate the total direct materials cost variance.

 

The following data relate to direct labor costs for March:

Rate: standard, $12.00; actual, $12.25

Hours: standard, 18,500; actual, 17,955

Units of production: 9,450

Calculate the direct labor rate variance.

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Computation of the direct materials cost variance:-

Total direct materials cost variance = Actual cost - Standard cost

= (9,500 * 4.75 * $2.10) - (9,500 * 4.50 * $2.00)

= $94,762.50 - $85,500

= $9,262.50 (U)

The total direct material cost variance is unfavorable because actual cost is higher than the standard cost.

 

Computation of the direct labor rate variance:-

Direct labor rate variance = (Actual rate - Standard rate) * Actual hours worked

= ($12.25 - $12) * 17,955

= $0.25 * 17,955

= $4,488.75 (U)

The direct labor rate variance is unfavorable because actual rate is higher than the standard rate.

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