Solved

Hair of the K9 Manufactures Dog Food The Company Actually Used 3,300 Kg of Beef at a 3,000

Question 143

Essay

Hair of the K9 manufactures dog food.During the month,it manufactured 3,000 bags of kibble,using 0.25 hours of direct labour per bag at a rate of $9.00 per hour.The materials and labour standards for manufacturing the bags of kibble are as follows:  Direct materials ( 1 kg of beef ($1.00 per kilogram) $1.00 Direct materials (1bag@$0.25 per bag) 0.25 Direct labour (0.30 hour @$9.00 per hour )2.70\begin{array}{lr}\text { Direct materials ( } 1 \mathrm{~kg} \text { of beef }(\$ 1.00 \text { per kilogram) } & \$ 1.00 \\\text { Direct materials }(1 \mathrm{bag} @ \$ 0.25 \text { per bag) } & 0.25 \\\text { Direct labour }(0.30 \text { hour } @ \$ 9.00 \text { per hour }) & 2.70\end{array} The company actually used 3,300 kg of beef at a price of $1.10 per kilogram.It also purchased 3,000 bags at a price of $0.15 per bag. A. Determine the total materials price variance and whether it is favourable or unfavourable.
B. Determine the materials usage variance for beef and whether it is favourable or unfavourable.
C. Determine the labour rate variance and whether it is favourable or unfavourable.
D. Determine the labour efficiency variance and whether it is favourable or unfavourable.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents