Sparingly Manufacturing Has Developed the Following Standards for One of Its

question 46

Essay

Sparingly Manufacturing has developed the following standards for one of its products.
STANDARD VARIABLE COST CARD
One Unit of Product
Materials: 5 yards × $6 per yard $30.00
Direct labor: 2 hours × $8 per hour 16.00
Variable manufacturing overhead: 2 hours × $5 per hour 10.00
Total standard variable cost per unit $56.00
The company records materials price variances at the time of purchase.
The following activity occurred during the month of December:
Materials purchased: 5,200 yards costing $29,900
Materials used: 4,750 yards
Units produced: 1,000 units
Direct labor: 2,100 hours costing $17,850
Required:
a. Calculate the direct materials price variance.
b. Calculate the direct materials usage variance.
c. Calculate the direct labor rate variance.
d. Calculate the direct labor efficiency variance.

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Definitions:

Psychosis

A mental disorder involving a disconnection from reality, which can include symptoms such as delusions, hallucinations, and disorganized thinking.

Involuntary Hospitalization

The act of admitting an individual to a healthcare facility for psychiatric treatment without their consent, typically when they are considered a danger to themselves or others.

Psychiatric Treatment

Medical care and therapeutic practices aimed at diagnosing, treating, and managing mental illness and emotional disorders.

Command Hallucinations

Auditory hallucinations that instruct the individual to perform specific actions, which can be dangerous or benign.