During March 2011, the following activity was recorded by the company relating to the production of tybos:
1. The company produced 7,500 units during the month.
2. A total of 20,000 pounds of materials were purchased at a cost of $55,000.
3. A total of 20,000 pounds of materials were used in production.
4. 4,000 hours of labor were incurred during the month at a total wage cost of $44,000.
Instructions
Calculate the following variances for March for Malone, Inc.
(a) Materials price variance
(b) Materials quantity variance
(c) Labor price variance
(d) Labor quantity variance

Question

Quizplus · Accepted Answer

The Answer of During March 2011, the following activity was recorded by the company relating to the production of tybos:
1. The company produced 7,500 units during the month.
2. A total of 20,000 pounds of materials were purchased at a cost of $55,000.
3. A total of 20,000 pounds of materials were used in production.
4. 4,000 hours of labor were incurred during the month at a total wage cost of $44,000.
Instructions
Calculate the following variances for March for Malone, Inc.
(a) Materials price variance
(b) Materials quantity variance
(c) Labor price variance
(d) Labor quantity variance

During March 2011, the Following Activity Was Recorded by the Company