The Standards for One Case of Saycheles Are During the Week Ended April 15, the Following Activity Took

question 39

Essay

The standards for one case of Saycheles are:
$$\begin{array} { | l | l | } \hline\text { Direct materials } & 7 \mathrm { lbs } @ \$ 5.90 / \mathrm { b } . \\\hline \text { Direct labor } & 4.2 \mathrm { hrs } @ \$ 13.00 / \mathrm { hr } \\\hline\end{array}$$

During the week ended April 15, the following activity took place:
• 14,500 lbs.of raw material were purchased for inventory at a total cost of $81,200;
• 1,800 cases of finished product were produced;
• 13,680 lbs.of raw material were used;
• 7,380 labor hours were worked at an average rate of $13.40 per hour.
Calculate each of the following variarices:
(a) Raw materials purchase price variance.
(b.) Raw materials usage variance.
(c) Direct labor rate variance.
(d.) Direct labor efficiency variance.
(e.) Explain the factors that most likely caused the variances computed above.

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Definitions:

Statute of Frauds

A legal principle requiring certain types of contracts to be written and signed to be legally enforceable, such as those involving real estate or contracts that cannot be performed within a year.

Public Policy

Guidelines and principles that reflect the societal norms and beliefs influencing laws and government actions.

UCC

The Uniform Commercial Code encompasses a detailed framework of laws managing commercial interactions across the United States.

Obligee

A contractual party who agrees to receive something from the other party.