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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
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.
a. Determine the price variance, quantity v ...Read More

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