Question

Levine Inc., which produces a single product, had prepared the following standard cost sheet for one unit of the product.

Answer 1

Answer:

material price variance (standard price - actual price) * quantity purchased

MPV= ( 3.30 - 3.50) 2300 =$460 Unfavorable

Material quantity variance = ( standard quantity - actual quantity) standard price

MQV = ( 1920 -2300) 3.30 = $1254 Unfavorable

Labour price (rate) variance = (Standard rate - actual rate) actual hours

LRV = (12- 11.8) * 280 = $56 Favorable

Labor hours variance = ( standard hours - actual hours) * standard rate

LHV = ( 240 - 280) * $12 = $480 unfavorable

Explanation:

the complete question:

Levine Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. Direct materials (8 pounds at $3.30 per pound) $26.40 Direct labor (1 hours at $12.00 per hour) $12.00 During the month of April, the company manufactures 240 units and incurs the following actual costs. Direct materials purchased and used (2,300 pounds) $8,050 Direct labor (280 hours) $3,304 Compute the total price, and quantity variances for materials and labor.