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Top Notch Music Inc. produces car stereos. During the year Top Notch Music produced 7,000 stereos....

Top Notch Music Inc. produces car stereos. During the year Top Notch Music produced 7,000 stereos. Materials and labor standards for producing these units are as follows:

Direct materials (1 electronic component kit @ $200)

200

Direct labor (10 hours @ $15)

150

Required:

A. Compute the direct material price and usage variances. Electronic kits purchased and used were 6,800 kits at an actual price of $180 per kit.

B. Compute the direct labor rate and efficiency variances. 68,000 labor hours were used and the actual labor rate was $13 per hour.

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Expert Solution

ekkarill92 answered 2 years ago
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