10-46 Variance analysis, material and labor Pharout Company uses a standard cost system. Job 007 was...

10-46 Variance analysis, material and labor Pharout Company uses a standard cost system. Job 007 was for the manufacture of 1,000 units of the product X. The company's standards for one unit of product X are as follows: QUANTITY Direct material Direct labor 10 ounces 5 hours PRICE $5 per ounce $10 per hour The job required 9,800 ounces of raw material costing $58,800. A favorable labor rate variance of $2,250 and an unfavorable labor efficiency variance of $1,000 also were determined for this job. Required (a) Determine the direct material price variance for job 007 based on the actual quantity of materials used. (b) Determine the direct material quantity variance for job 007 based on the actual quantity of materials used. (c) Determine the actual quantity of direct labor hours used on job 007 based on the actual quantity of materials used. (d) Determine the actual labor costs incurred for job 007.

Expert Solution

ekkarill92 answered 1 year ago

Your Company uses a standard cost system. The labor standard is 10 units per 8-hour day...

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when a manufacturing company uses a standard cost system, an unfavorable variance is a contra expense

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