WPC Company's Budget and actual costs per unit are provided below for the most recent period. During this period, 700 units were actually produced. Product Product Standard Cost Actual Cost Materials Metres Unit Price Per Metre Standard $2.00 $10.00 Actual 5.2 $2.20 $11.44 Direct labour Hourly Rate 3 Hours Standard $5.00 $5.50 $15.00 Actual 3.2 $17.60 Variable overhead Hours Hourly Rate Standard $3.00 $12.00 Actual 4.2 $3.10 $13.02 $42.06 Total unit cost $37.00 Required: Given the information above, compute the following variances. Also indicate if the variances are favorable or unfavorable. 1. Materials price variance 2. Materials quantity variance 3. Direct labour rate variance 4 Direct labour efficiencv variancé
WPC Company's Budget and actual costs per unit are provided below for the most recent period. During this period, 700 units were actually produced. Product Product Standard Cost Actual Cost Materials Metres Unit Price Per Metre Standard $2.00 $10.00 Actual 5.2 $2.20 $11.44 Direct labour Hourly Rate 3 Hours Standard $5.00 $5.50 $15.00 Actual 3.2 $17.60 Variable overhead Hours Hourly Rate Standard $3.00 $12.00 Actual 4.2 $3.10 $13.02 $42.06 Total unit cost $37.00 Required: Given the information above, compute the following variances. Also indicate if the variances are favorable or unfavorable. 1. Materials price variance 2. Materials quantity variance 3. Direct labour rate variance 4 Direct labour efficiencv variancé
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 14CE: Refer to Cornerstone Exercise 8.13. In March, Nashler Company produced 163,200 units and had the...
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