Question:
Cave Creek Industrial Works has the following standards for one of its products.
Direct Material (3ft @ $4) $12.00
Direct Labor (.4hr @ $12) $ 4.80
During the most recent year, the following actual results were recorded.
Production 6,000 Units
Direct Material (11,750ft @ $5.20) $61,100
Direct Labor (2,900Hr @ $10.20) $29,580
1. Calculate the Materials Price Variance
2. Calculate the Materials Usage Variance
3. Calculate the Labor Rate Variance
Calculate the Labor Efficiency Varia