Adams Company has made the following information available for the month of March:
$\begin{array}{ll}
\underline{\text { Actual }} &\underline{\text { standards }} \
\text {1,500 units produced} & 2 \mathrm{DLH} \text { per unit } @ \$ 10\\
\text { 2,400 DLH used@\$10.25 per DLH } &\
\end{array}$
Assume that Adams Company hires part-time employees for production of these units.
Compute the price and efficiency variances.

Question

Adams Company has made the following information available for the month of March:
 $\begin{array}{ll}
\underline{\text { Actual  }} &\underline{\text { standards }} \
\text {1,500 units produced} &  2 \mathrm{DLH} \text { per unit } @ \$ 10\\
\text { 2,400 DLH used@\$10.25 per DLH } &\
\end{array}$
Assume that Adams Company hires part-time employees for production of these units.
Compute the price and efficiency variances.

Quizplus · Accepted Answer

The Answer of Adams Company has made the following information available for the month of March:
 $\begin{array}{ll}
\underline{\text { Actual  }} &\underline{\text { standards }} \
\text {1,500 units produced} &  2 \mathrm{DLH} \text { per unit } @ \$ 10\\
\text { 2,400 DLH used@\$10.25 per DLH } &\
\end{array}$
Assume that Adams Company hires part-time employees for production of these units.
Compute the price and efficiency variances.

Adams Company Has Made the Following Information Available for the Month