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Japan Company produces lamps that require 2 standard hours per unit at an hourly rate of $19.30 per hout Production of 5,600

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Answer 1

Answer #1

Standard Price per ounce =$1.77
Standard quantity =1061 units*10 =10,610 ounce
Actual Price per pound =$2.05
Actual quantity =10,928 pounds

Material Price variance = (Standard price - Actual Price)*Actual quantity
Material Price variance = ($1.77 - $2.05)*10,928 =$3,059.84(U)
So Option A is answer

Standard Price per yard =$1.92
Standard quantity =9000 units*4.61 =41,490 yards
Actual Price per pound =$2.03
Actual quantity =46,620 yards

Material quantity variance = Standard price(Standard Quantity - Actual Quantity)
Material quantity variance = $1.92(41,490 yards - 46,620 yards) =$9,849.60(U)
So Option D is answer


Standard Rate per hour =$19.30 per hour
Standard Hours =2.80 hours*3,500 =11,200 hours
Actual Rate per hour =$18.90 per hour
Actual hours worked =11,420 hours

Labor rate variance =Actual hours(Standard rate - Actual rate)
Labor efficiency variance =Standard Rate(Actual Hours - Standard Hours)
Direct labor variance =(Standard rateStandard hours) - (Actual RateActual hours)

Labor rate variance =11,420 hours*($19.30 - $18.90) =$4,568(F)
Labor efficiency variance =$19.30*(11,420 - 11,200) =$4,246(U)
Direct labor variance =($19.3011,200) - ($18.9011,420) =$322(F)

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Answer 2

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