Flavor Rite Variance calculations
Please show step by step answer.
The standards for one carton of Flavor Rite are:
Direct Materials 3.2lbs @ $6.00/lb
Direct Labor 2.4 hrs. @$10.00/hr.
During the week ended May 17, the following activity took place:
â?¢ 4,800 lbs. of raw material were purchased for inventory at a cost of $5.60 per pound;
â?¢ 1,200 cartons of finished product were produced;
â?¢ 4,020 lbs. of raw material were used;
â?¢ 3,110 labor hours were worked at a total cost of $26,435.
Calculate each of the following variances:
(a.) Raw materials purchase price variance.
(b.) Raw materials usage variance.
(c.) Direct labor rate variance.
(d.) Direct labor efficiency variance: