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San Diego State University Operations And Supply Chain Management Assignment Help - Products


Question - Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis
Eastern Polymers, Inc., processes a base chemical into plastic.Standard costs and actual costs for direct
materials, direct labor, and factory overhead incurred for the manufacture of 6,800 units of product were as
follows:
Standard Costs Actual Costs
Direct materials 8,800 lbs. at $4.70 8,700 lbs. at $4.50
Direct labor 1,700 hrs. at $17.50 1,740 hrs. at $17.80
Factory overhead Rates per direct labor hr.,
based on 100% of normal
capacity of 1,770 direct
labor hrs.:
Variable cost, $3.50 $5,890 variable cost
Fixed cost, $5.50 $9,735 fixed cost
Each unit requires 0.25 hour of direct labor.
Required:
a. Determine the price variance, quantity v ...Read More

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