E24.8 (LO 2, 3), AN Writing The following direct materials and direct labor data pertain to the operations of Laurel Company for the month of August. Costs Quantities Actual hours incurred and used Actual quantity of materials purchased and used Standard hours used Standard quantity of materials used Actual labor rate Actual materials price Standard labor rate Standard materials price $13 per hour $128 per ton $12.50 per hour $130 per ton Instructions a. Compute the total, price, and quantity variances for materials and labor. b. Provide two possible explanations for each of the unfavorable variances calculated above, and suggest where responsibility for the unfavorable result might be placed. Determine amounts from variance report. 4,150 hours 1,220 tons 4,300 hours 1,200 tons.

E24.8 (LO 2, 3), AN Writing The following direct materials and direct labor data pertain to the operations of Laurel Company for the month of August. Costs Quantities Actual hours incurred and used Actual quantity of materials purchased and used Standard hours used Standard quantity of materials used Actual labor rate Actual materials price Standard labor rate Standard materials price $13 per hour $128 per ton $12.50 per hour $130 per ton Instructions a. Compute the total, price, and quantity variances for materials and labor. b. Provide two possible explanations for each of the unfavorable variances calculated above, and suggest where responsibility for the unfavorable result might be placed. Determine amounts from variance report. 4,150 hours 1,220 tons 4,300 hours 1,200 tons.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter26: Manufacturing Accounting: The Job Order Cost System

Section: Chapter Questions

Problem 2SEA: SCHEDULE OF COST OF GOODS MANUFACTURED The following information is supplied for Maupin...

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