Asked by Lizbeth RamosPerdomo on Jun 15, 2024
Verified
The following information describes production activities of the Midtown Corp.:
30,000 units were completed during the year
Budgeted standards for each unit produced:
1/2 lb.of raw material at $4.15 per lb.
10 minutes of direct labor at $12.50 per hour
Compute the direct materials price and quantity and the direct labor rate and efficiency variances.Indicate whether each variance is favorable or unfavorable.
Direct Materials Price
The cost per unit of raw materials that are directly traceable to the production of goods.
Direct Labor Rate Variances
The difference between the actual cost of direct labor and the expected (or standard) cost, used in variance analysis to monitor labor costs.
Budgeted Standards
Budgeted standards represent targeted financial goals or benchmarks that a company aims to achieve within a certain period, often used in performance assessment and planning.
- Determine discrepancies in labor costs, specifically in terms of rate and efficiency.
- Determine the disparities in direct materials costs and quantities.
Verified Answer
Learning Objectives
- Determine discrepancies in labor costs, specifically in terms of rate and efficiency.
- Determine the disparities in direct materials costs and quantities.
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