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Sagot :
Answer:
Results are below.
Explanation:
To calculate the direct material price and quantity variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (5 - 4.95)*14,000
Direct material price variance= $700 favorable
Actual price= 69,300 / 14,000= $4.95
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (9*1,500 - 14,000)*5
Direct material quantity variance= $2,500 unfavorable
To calculate the direct labor rate and efficiency variance, we need to use the following formulas:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (5*1,500 - 7,600)*10
Direct labor time (efficiency) variance= $1,000 unfavorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (10 - 10.6)*7,600
Direct labor rate variance= $4,560 unfavorable
Actual rate= 80,560 / 7,600= $10.6
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