Homework Answers
(1)
Material price variance = actual quantity x (standard price - actual price)
= 36000 x ($3.75 - $4.00)
= $9000 Unfavorable
(2)
Labor rate variance = actual hours x (standard rate - actual rate)
= 4100 x ($20 - $15)
= $20500 Favorable
Where,
Actual rate = actual labor cost/actual hours
= $362700/37200 = $9.75
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Stuck.
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