ORIE 3150 ICE November 22 2011

ORIE 3150 ICE November 22 2011 - 1 F V has just received an...

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1. F & V has just received an order for 200 turbine subassemblies. The standard direct material requirement is 5 kilograms of steel per subassembly. The standard cost of the steel is $5 per kilogram. The standard direct labor requirement is 4 hours per subassembly, and the standard direct labor cost is $26.50 per hour. Manufacturing overhead is applied at the standard rate of $21 per direct labor hour. F & V finds that after the batch of 200 subassemblies has been manufactured that the actual data were slightly different. The actual quantities are: Direct material: 980 kilograms of steel used, purchased at $4.80 per kilogram. Direct labor: 915 hours charged to the job, at a total cost of $22,875 Manuf. Overhead: Actual overhead expenses were $19,215 for the period. a) Find the Material Price Variance, the Material Quantity Variance, and the Total Material Variance. b) Find the Labor Price Variance, the Labor Quantity Variance, and the Total Labor Variance. c)
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