Lisa Scamponi Ltd. Produces evening bags. In December 2001, Ms. Scamponi, president of the company, received the following information from Antonio Buffa, the new controller, in regard to November production:
Production during month ……………………………1,200 handbags
Actual cost of material purchased and used …………$4,767.18
Standard material allowed …………………………..1/3 square yard per bag
Material quantity variance …………………………..$594 U
Actual hours worked ………………………………..2,520
Standard labor time per handbag ……………………2 hours
Labor rate variance ………………………………….$630 F
Standard labor rate per hour …………………………$7
Standard price per yard of material …………………$8
Ms. Scamponi asked Mr. Buffa to provide her with the following specific information:
a. The standard quantity of material allowed for November production
b. The standard direct labor hours allowed for November production
c. The material price variance
d. The labor efficiency variance
Enjoy 24/7 customer support for any queries or concerns you have.
Phone: +1 213 3772458
Email: support@gradeessays.com