Materials and labor variances.The Chocolate Factory presents the following data for September:

During the month,the firm purchased 59,000 pounds of materials for $216,500.Wages earned were $330,000.
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 Chocolate Factory presents the following data for September:
  
During the month,the firm purchased 59,000 pounds of materials for $216,500.Wages earned were $330,000.
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 Chocolate Factory presents the following data for September:
  
During the month,the firm purchased 59,000 pounds of materials for $216,500.Wages earned were $330,000.
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