Direct-material price variance


(For the following, positive values are unfavorable variances and negative values are favorable variances)

Cost Standards for Product X:

Direct Material 3 pounds @ $2.53 per pound $7.59
Direct Labor 5 hours @ $7.53 per hour 37.65

Units produced 7,795
Direct material purchased 26,000 pounds @ $2.70 $70,200.
Direct material used 23,100 pounds @ $2.70 62,370.
Direct Labor 40,100 hours @ $7.30 292,730.

A) The direct-material price variance is: ?

B) The direct-labor efficiency variance is: ?

C) The standard hours allowed for the work performed are: ?

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Accounting Basics: Direct-material price variance
Reference No:- TGS01913122

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