The following information is available:
Actual output was 1,000 units.The company's per unit standards call for 15 yards of direct material at $10.00 per yard and 4 hours of direct labor at $9.50 per hour.The company purchased and used 11,000 yards of material.
Required:
A)Compute the price and quantity variances for direct material.
B)Compute the price and quantity variances for direct labor.

Question

The following information is available:
  Actual output was 1,000 units.The company's per unit standards call for 15 yards of direct material at $10.00 per yard and 4 hours of direct labor at $9.50 per hour.The company purchased and used 11,000 yards of material.
Required: 
A)Compute the price and quantity variances for direct material. 
B)Compute the price and quantity variances for direct labor.

Quizplus · Accepted Answer

The Answer of The following information is available:
  Actual output was 1,000 units.The company's per unit standards call for 15 yards of direct material at $10.00 per yard and 4 hours of direct labor at $9.50 per hour.The company purchased and used 11,000 yards of material.
Required: 
A)Compute the price and quantity variances for direct material. 
B)Compute the price and quantity variances for direct labor.

The Following Information Is Available