Hernandez Corporation Uses a Standard Cost System and Has Established

question 18

Essay

Hernandez Corporation uses a standard cost system and has established the following standards for one unit of product: During October, the company purchased 240,000 pounds of material at a total cost of $588,000. The total factory wages for October were $49,400. During October, 21,000 units of product were manufactured using 211,000 pounds of material and 5,200 direct labor hours. Material quantity and price variances are recorded when materials are used.
a.Compute the material quantity and labor efficiency variances.
b.Compute the material price and labor rate variances.Show whether each of the above variances was either favorable or unfavorable.

---

Definitions:

Infection Control

Refers to policies and procedures used to minimize the risk of spreading infections, especially in healthcare environments.

Pruritic Vesicular Eruptions

Skin outbreaks characterized by small, fluid-filled blisters that cause severe itching.

Malaise

A feeling of discomfort or uneasiness.

Chicken Pox

A contagious viral disease characterized by an itchy rash and red spots or blisters all over the body.