Consider the following statements, and indicate which variable is an independent variable and which variable is a dependent vari
1 answer:
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Answer:
1. Material Variances
Material Price Variance = $3,000 F
Material Quantity Variance = $4,000 U
2. Labor Variances
Labor Rate Variance = $1,425 U
Labor Efficiency Variance = $900 F
Explanation:
Provided information we have,
Direct Materials
Standard Quantity = 4.6 pounds
Standard Rate = $2.50 per pound
Direct Labor
Standard Hours = 0.2 hour per unit
Standard Rate = $18 per hour
Actual Materials
Actual Quantity = 20,000 pounds
Actual Rate = $2.35 per pound
Actual Labor
Labor Hours = 750 hours
Labor Cost = $14,925
Labor rate =
Actual Units produced = 4,000
1. Material Variances
= ($2.50 - $2.35) 20,000 pounds
= $3,000
As the actual rate is less than standard rate the variance is favorable.
Standard Quantity = 4,000 4.6 = 18,400 pounds
Material Quantity Variance = (18,400 - 20,000) $2.50
= - $4,000
As the actual raw material quantity used is higher than standard raw material quantity the variance is unfavorable.
2. Labor Variances
= ($18 - $19.9) 750 = - $1,425
As actual rate is higher than standard rate thus the variance is unfavorable.
Standard Hours = 4,000 0.2 = 800
Labor Efficiency Variance = (800 - 750) $18
= $900
As the Standard Hours is more than Actual Hours the variance is favorable.
1. Material Variances
Material Price Variance = $3,000 F
Material Quantity Variance = $4,000 U
2. Labor Variances
Labor Rate Variance = $1,425 U
Labor Efficiency Variance = $900 F
Answer:
$60
Explanation:
According to information on your question. We are to note that an absence or reduction of suppliers could lead to lower supply.
As in this case, the producer supply loss of $60 was incurred as some sellers dropped out of the market as a result of the tax.
