Chapter 22 Homework Kimmel

Accounting: Tools for Business Decision Making

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Chapter 22 Homework Name Class Time 1. Grand Company produces a single product. The standard costs for one unit of product are: Direct Material: 4 pounds at $40 per pound $ 160 Direct Labor: 3 hours at $8 per hour $ 24 During August, 300 units were produced . The actual costs associated with March production were: Materials purchased: 1,100 pounds at $37 per pound Materials used in production:
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Unformatted text preview: 1,100 pounds Direct Labor: 890 hours at $8.50 per hour Required: Compute the variances for direct materials and direct labor. Be sure to label each variance as favorable or unfavorable . Show all calculations. Materials price variance Materials quantity variance Labor rate variance Labor efficiency variance 2. Explain what each of the above variances indicates....
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This document was uploaded on 01/31/2010.

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