Q.Compute price and efficiency variances for direct materials and direct manufacturing labor. Emerald Statuarymanufactures bust statues of famous historical figures. All statues are the same size. Each unit requires thesame amount of resources. The following information is from the static budget for 2017:Expected production and salesExpected selling price per unit7,000 units680$1,400,000Total fixed costsStandard quantities, standard prices, and standard unit costs follow for direct materials and direct manu-facturing labor:Standard Quantity10 poundsStandard PriceStandard Unit Cost$ 8 per pound$50 per hour$ 80Direct materialsDirect manufacturing labor$1853.7 hoursDuring 2017, actual number of units produced and sold was 4,800, at an average selling price of $720. Ac-tual cost of direct materials used was $392,700, based on 66,000 pounds purchased at $5.95 per pound. Directmanufacturing labor-hours actually used were 18,300, at the rate of $48 per hour. As a result, actual directmanufacturing labor costs were $878,400. Actual fixed costs were $1,170,000. There were no beginning orending inventories.

Name: Q.Compute price and efficiency variances for direct materials and dire
Uploaded: 2024-03-20T06:33:06.000Z
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Description: Q.Compute price and efficiency variances for direct materials and direct manufacturing labor. Emerald Statuarymanufactures bust statues of famous historical figures. All statues are the same size. Each unit requires thesame amount of resources. The f