Calculation of Labor Variances | Solution Library Search

» Solution Id 554

Back to Search Result

View Cart

Your Cart | 17 Item(s)

Original Price: $4.99 Now at: $2.99 Reads (373)

Calculation of Labor Variances.

1.The following direct materials and direct labor data pertain to the operations of Solario Manufacturing Company for the month of August.

Costs
Actual labor rate	$18 per hour
Actual material price	$177 per ton
Standard labor rate	$17 per hour
Actual material price	$179 per ton

Quantities
Actual hours incurred and used	5,796 hours
Actual quantity of materials purchases and used	1,691 tons
Standard hours used	5,934 hours
Standard quantity of materials used	1,656 tons

Compute the total, price, and quantity variance for materials and labor.

Total materials variance	$______	______
Materials price variance	$______	______
Materials quantity variance	$______	______
Total labor variance	$______	______
Labor price variance	$______	______
Labor quantity variance	$______	______

2.The following direct materials and labor data pertain to the operations of Solario Manufacturing Company for the month of August.

Costs
Actual labor rate	$13 per hour
Actual material price	$128 per ton
Standard labor rate	$12 per hour
Actual material price	$130 per ton

Quantities
Actual hours incurred and used	4,200 hours
Actual quantity of materials purchases and used	1,225 tons
Standard hours used	4,300 hours
Standard quantity of materials used	1,200 tons

Provide two possible explanations for each of the unfavorable variances calculated in 1, and suggest where responsibility for the unfavorable result might be placed (1).

Click here to download the question