Lisle Manufacturing Has Developed the Following Standards for One of Its

question 18

Essay

Lisle Manufacturing has developed the following standards for one of its products:
The company records materials price variances at the time of purchase.
During August, Lisle purchased 16,000 yards of material costing £169,600 and used 12,500 yards in its manufacturing process. There was no material inventory at August 1. Lisle recorded a total of 4,600 direct labour hours worked for a total payroll of £72,680. Lisle manufactured 1,200 units in August.
Required:

a.
Calculate the materials price variance and indicate whether it is favorable or unfavorable.
b.
Calculate the materials usage variance and indicate whether it is favorable or unfavorable.
c.
Calculate the labour rate variance and indicate whether it is favorable or unfavorable.
d.
Calculate the labour efficiency variance and indicate whether it is favorable or unfavorable.

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Definitions:

Preconventional Morality

A stage in moral development where an individual's sense of morality is externally controlled, based primarily on consequences of actions.

Lawrence Kohlberg

was a psychologist known for his theory of moral development, which proposed stages through which individuals progress in their ethical and moral reasoning as they age.

Seeking Pleasure

The pursuit of activities or experiences that provide enjoyment or satisfaction.

Depressive Disorders

A group of mental health conditions characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in most activities.