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In: Accounting

Last year Strimmenos Inc. budgeted for production and sales of 9,000 units. The company actually produced...

Last year Strimmenos Inc. budgeted for production and sales of 9,000 units. The company actually produced and sold 8,640 units. Each units has a standard requiring 0.5 pounds of materials at a budgeted cost of $2.33 per pound and 1.36 hours of assembly time at a cost of $8.95 per hour. The items sell for $165 each. Actual cost for the production of 8,640 units included 4,538 pounds of materials at $2.3 per pound and $109,400 for labor at $9.24 per hour.

Required:

Calculate the following (label each result as favorable or unfavorable )

A. Material price variance

B. Material quantity variance

C. Material cost variance

D. Labor rate variance

E. Labor efficiency variance

F. Labor cost variance

Solutions

Expert Solution

ekkarill92 answered 1 hour ago
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