Materials and labor variances.The Sweet Tooth Chocolate Company presents the following
data for October:

During the month,the firm purchased 49,000 pounds of materials for $127,500.Wages earned were $214,000.
Required:
1.Compute the labor and material variances.
2.Based on the information for the company,write a short report explaining the cause of the variances that you computed.

Question

Materials and labor variances.The Sweet Tooth Chocolate Company presents the following
data for October:
  
During the month,the firm purchased 49,000 pounds of materials for $127,500.Wages earned were $214,000.
Required:
1.Compute the labor and material variances.
2.Based on the information for the company,write a short report explaining the cause of the variances that you computed.

Quizplus · Accepted Answer

The Answer of Materials and labor variances.The Sweet Tooth Chocolate Company presents the following
data for October:
  
During the month,the firm purchased 49,000 pounds of materials for $127,500.Wages earned were $214,000.
Required:
1.Compute the labor and material variances.
2.Based on the information for the company,write a short report explaining the cause of the variances that you computed.

Materials and Labor Variances