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university of california Operations And Supply Chain Management Assignment Help - The standard costs and actual costs

Question - The standard costs and actual costs for direct materials, direct labor, and factory overhead for the
manufacture of 2,500 units of product are as follows:

Standard Costs
Direct materials 2,500 kilograms @ $8
Direct labor 7,500 hours @ $12
Actual Costs
Direct materials 2,600 kilograms @ $8.75
Direct labor 7,400 hours @ $11.40
Factory overhead (100% capacity Af?cAc‚¬" 10,000 hrs.):
Variable cost @ $2 per hour
Total variable cost, $18,000
Fixed cost @ $0.80 per hour
Total fixed cost, $8,000

The following data relate to direct materials costs for November:
Actual costs 4,500 pounds at $6.00
Standard costs 4,600 pounds at $5.50
What is the direct materials price variance?

a. $2,250 favorable
b. $2,250 unfav ...Read More

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