1. The following direct materials and direct labor data pertain to operations of Solario Manufacturing Company for month of August.
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Costs
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Actual labor rate
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$18 per hour
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Actual material price
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$177 per ton
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Standard labor rate
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$17 per hour
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Actual material price
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$179 per ton
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Quantities
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Actual hours incurred and used
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5,796 hours
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Actual quantity of materials purchases and used
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1,691 tons
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Standard hours used
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5,934 hours
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Standard quantity of materials used
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1,656 tons
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find out total, price, and quantity variance for materials and labour.
2. Following direct materials and labor data pertain to operations of Solario Manufacturing Company for month of August.
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Costs
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Actual labor rate
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$13 per hour
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Actual material price
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$128 per ton
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Standard labor rate
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$12 per hour
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Actual material price
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$130 per ton
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Quantities
|
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Actual hours incurred and used
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4,200 hours
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Actual quantity of materials purchases and used
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1,225 tons
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Standard hours used
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4,300 hours
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Standard quantity of materials used
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1,200 tons
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Give two possible description for each of unfavorable variances computed in 1, and recommend where responsibility for unfavorable result might be placed (1).