Acme Inc. has the following information available: Actual price paid for material $1.00 Standard price for material $0.80 Actual quantity purchased and used in production 110 Standard quantity for units produced 120 Actual labor rate per hour $14 Standard labor rate per hour $15 Actual hours 190 Standard hours for units produced 220 A.  Compute the material price and quantity, and the labor rate and efficiency variances. Enter all amounts as positive numbers. Material price variance $fill in the blank 1   Material quantity variance $fill in the blank 3   Labor rate variance $fill in the blank 5

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter10: Standard Costing And Variance Analysis
Section: Chapter Questions
Problem 37BEB: Use the following information to complete Brief Exercises 10-36 and 10-37: Ambient Inc. produces...
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Acme Inc. has the following information available:

Actual price paid for material $1.00
Standard price for material $0.80
Actual quantity purchased and used in production 110
Standard quantity for units produced 120
Actual labor rate per hour $14
Standard labor rate per hour $15
Actual hours 190
Standard hours for units produced 220

A.  Compute the material price and quantity, and the labor rate and efficiency variances. Enter all amounts as positive numbers.

Material price variance $fill in the blank 1  
Material quantity variance $fill in the blank 3  
Labor rate variance $fill in the blank 5  
Labor efficiency variance $fill in the blank 7  

B.  What are some possible causes for this combination of favorable and unfavorable variances?

 

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