Tao Industries,Inc.developed standard costs for direct material and direct labor.In 2012 Tao estimated the following standard costs for one of their major products,the 50-gallon plastic container.

During August,Tao produced and sold 8,000 containers using 1,900 pounds of direct materials at an average cost per pound of $41 and 250 direct labor hours at an average wage of $18.25 per hour.Determine the following variances for August:
Required:
a.Total direct material cost variance.
b.Direct material price variance.
c.Direct material quantity variance.
d.Total direct labor cost variance.
e.Direct labor rate variance.
f.Direct labor efficiency variance.

Question

Tao Industries,Inc.developed standard costs for direct material and direct labor.In 2012 Tao estimated the following standard costs for one of their major products,the 50-gallon plastic container.

During August,Tao produced and sold 8,000 containers using 1,900 pounds of direct materials at an average cost per pound of $41 and 250 direct labor hours at an average wage of $18.25 per hour.Determine the following variances for August:
Required:
a.Total direct material cost variance.
b.Direct material price variance.
c.Direct material quantity variance.
d.Total direct labor cost variance.
e.Direct labor rate variance.
f.Direct labor efficiency variance.

Quizplus · Accepted Answer

The Answer of Tao Industries,Inc.developed standard costs for direct material and direct labor.In 2012 Tao estimated the following standard costs for one of their major products,the 50-gallon plastic container.

During August,Tao produced and sold 8,000 containers using 1,900 pounds of direct materials at an average cost per pound of $41 and 250 direct labor hours at an average wage of $18.25 per hour.Determine the following variances for August:
Required:
a.Total direct material cost variance.
b.Direct material price variance.
c.Direct material quantity variance.
d.Total direct labor cost variance.
e.Direct labor rate variance.
f.Direct labor efficiency variance.