Fine Lumber Inc.mills and finishes furniture kits.A certain kit requires the following:

During the third quarter,the company made 1,500 kits and used 3,150 square yards of wood costing $42,600.Direct labor totaled 2,100 hours for $46,150.
Required:
a.Compute the direct materials price and efficiency variances for the quarter.
b.Compute the direct manufacturing labor price and efficiency variances for the quarter.

Question

Fine Lumber Inc.mills and finishes furniture kits.A certain kit requires the following:
  
During the third quarter,the company made 1,500 kits and used 3,150 square yards of wood costing $42,600.Direct labor totaled 2,100 hours for $46,150.
Required:
a.Compute the direct materials price and efficiency variances for the quarter.
b.Compute the direct manufacturing labor price and efficiency variances for the quarter.

Quizplus · Accepted Answer

The Answer of Fine Lumber Inc.mills and finishes furniture kits.A certain kit requires the following:
  
During the third quarter,the company made 1,500 kits and used 3,150 square yards of wood costing $42,600.Direct labor totaled 2,100 hours for $46,150.
Required:
a.Compute the direct materials price and efficiency variances for the quarter.
b.Compute the direct manufacturing labor price and efficiency variances for the quarter.