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In: Accounting

The direct material and direct labor standards for one case of Springbreak Tonic are: Direct Materials...

The direct material and direct labor standards for one case of Springbreak Tonic are:

Direct Materials (5 quarts @ $8 per quart) ……………………

$40

Direct Labor (2 hours @ $12 per hour) ………………………..

24

During the week ended March 7, the following activity took place:

16,000 quarts of raw materials were purchased for inventory at a cost of $8.10 per quart.

3,000 cases of finished product were produced.

14,700 quarts of raw material were used.

6,300 hours of direct labor were incurred at a cost of $76,860.

Calculate the total dollar amount of each of the following variances (show your work in detail):

Raw materials purchase price variance.

Raw materials usage variance.

Direct labor efficiency variance.

Direct labor rate variance.

If you were the raw materials supervisor, how might you have preferred having the raw materials usage variance reported?

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Expert Solution

ekkarill92 answered 2 years ago
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