Easton Industries Developed the Following Standards for One of Its

question 22

Essay

Easton Industries developed the following standards for one of its products:

$$\begin{array} { | l | l | l l | } \hline \text { Material } & 5 \text { teet } & \$ 15 i f 00 t & \$ 75 \\\hline \text { Labor } & 10 \text { hours } & \$ 15 \text { hour } &\underline{ 150 }\\\hline \text { Total variable cost } & & & \$ 225 \\\hline\end{array}$$ Actual results for September were:
$$\begin{array} { | l | l | } \hline \text { Units produced } & 12,000 \\\hline \text { Material purchased } & 40,000 \text { feet for } \$ 14.25 \text { foot } \\\hline \text { Material used } & 70,000 \text { teet } \\\hline \text { Direct Labor } & 119,500 \text { hours at } \$ 15.10 \text { hour } \\\hline\end{array}$$
Required:
(1)Calculate the following variances:
(a)Material purchase price variance.
(b)Material quantity variance.
(c)Labor rate variance.
(d)Labor efficiency variance.
(2)Why would it be inappropriate to calculate the Material price variance at the time the material is used;might there be a situation when it might be all right to do so?

Grasp the developmental theories explaining aging and their implications.

Understand the relevance of facial expressions and emotional communication across all ages.

Recognize the influence of parental and environmental factors on adolescent mental health.

Understand emotional self-regulation and its importance in achieving a desired emotional state.

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Definitions:

Taft-Hartley Act

A 1947 federal law that restricted the activities and power of labor unions in the United States.

Landrum-Griffin Act

A 1959 U.S. federal law formally known as the Labor-Management Reporting and Disclosure Act, which aims to protect union members' rights and promote democracy within labor organizations.

Pure Monopsonist

A market condition where there is only one buyer for a product or service, giving this buyer significant control over the market.

Market Equilibrium Wage

The market equilibrium wage is the rate of compensation for labor where the quantity of labor supplied by workers matches the quantity of labor demanded by employers, resulting in no excess supply or demand in the job market.