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Actual Results for September Were

Question 72

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Actual results for September were:
Actual results for September were:    Ruth Industries developed the following standards for one of its products:    Required: (1) Calculate the following variances (a) Material purchase price variance (b) Material quantity variance (c) Labor rate variance (d) Labor efficiency variance (2) Why would it be inappropriate to calculate the Material price variance at the time the material is used; might there be a situation when it might be all right to do so? Ruth Industries developed the following standards for one of its products:
Actual results for September were:    Ruth Industries developed the following standards for one of its products:    Required: (1) Calculate the following variances (a) Material purchase price variance (b) Material quantity variance (c) Labor rate variance (d) Labor efficiency variance (2) Why would it be inappropriate to calculate the Material price variance at the time the material is used; might there be a situation when it might be all right to do so?
Required:
(1) Calculate the following variances
(a) Material purchase price variance
(b) Material quantity variance
(c) Labor rate variance
(d) Labor efficiency variance
(2) Why would it be inappropriate to calculate the Material price variance at the time the material is used; might there be a situation when it might be all right to do so?

Correct Answer:

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(1)
(a) $30,000 favorable 40,000($14.25-...

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