Assume Davis Consulting Inc has created a standard cost card for each job. Standard direct materials include 14 software packages at a cost of $900 per package.
Standard direct labor costs per job include 90 hours at $120 per hour. Davis plans on completing 12 jobs during March 2013.
Actual direct materials costs for March included 90 software packages at a total cost of $81,450. Actual direct labor costs included 100 hours per job at an average rate of $125 per hour. Davis completed all 12 jobs in March
1. Calculate direct materials cost and efficiency variances.
2. Calculate direct labor cost and efficiency variances.
3. Prepare journal entries to record the use of both materials and labor for March for the company.