Essay
During May, the following actual activities occurred: Material purchased, 12,000 pounds for $45,600; material used in the production of 2,000 units of product, 13,000 pounds; direct labor, 3,500 hours costing $56,000.
Required:
(1) Compute the following variances:
(a) material quantity variance
(b) labor rate variance
(c) labor efficiency variance
2) Give one possible explanation for each of the 3 variances computed.
O'Malley Company manufactures a single product. The following standards have been developed for it:
Correct Answer:
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(a) $4,000 unfavorable $4(13,000-6(2...View Answer
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Correct Answer:
Verified
(a) $4,000 unfavorable $4(13,000-6(2...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
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