The following data relates to Potawatomi Corporation's operations for the month. Potawatomi produced 8,500 units and the normal monthly capacity is 20,000 direct labor hours.
Use fork diagrams to calculate the following variances:
a. Materials price variance
b. Materials efficiency variance
c. Labor rate variance
d. Labor efficiency variance
e. Variable overhead spending variance
f. Variable overhead efficiency variance

Question

The following data relates to Potawatomi Corporation's operations for the month. Potawatomi produced 8,500 units and the normal monthly capacity is 20,000 direct labor hours.
  Use fork diagrams to calculate the following variances:
a. Materials price variance
b. Materials efficiency variance
c. Labor rate variance
d. Labor efficiency variance
e. Variable overhead spending variance
f. Variable overhead efficiency variance

Quizplus · Accepted Answer

The Answer of The following data relates to Potawatomi Corporation's operations for the month. Potawatomi produced 8,500 units and the normal monthly capacity is 20,000 direct labor hours.
  Use fork diagrams to calculate the following variances:
a. Materials price variance
b. Materials efficiency variance
c. Labor rate variance
d. Labor efficiency variance
e. Variable overhead spending variance
f. Variable overhead efficiency variance

The Following Data Relates to Potawatomi Corporation's Operations for the Month