Chat with us, powered by LiveChat Materials and labor variances analyses Accelerato - BonPapers

Materials and labor variances analyses Accelerato

Materials and labor variances analyses Accelerator, Inc. manufactures a fuel additive, Stomp, that has a stable selling price of $44 per drum. The company has been producing and selling 80,000 drums per month. In connection with your examination of Accelerator’s financial statements for the year ended September 30, management has asked you to review some computations made by Accelerator’s cost accountant. Your working papers disclose the following about the company’s operations: Standard costs per drum of product manufactured: Materials: 8 gallons of chemicals@$2 $16 1 empty drum @ $1/drum 1 $17 Direct labor: 1 hour @ $8/hour $ 8 Factory Overhead $ 6 Costs and expenses during September: Stomp: 600,000 gallons purchased at a cost of $1,140,000; 645,000 gallons used. Empty drums: 94,000 purchased at a cost of $94,000; 80,000 drums used. Direct labor: 81,000 hours worked at a cost of $654,480. Factory overhead: $768,000. Required: Calculate the following variances for September 1. Materials quantity variance. 2. Materials purchase price variance. 3. Labor efficiency variance. 4. Labor rate variance.

Order an Excellent Paper with Writing Service

Bonpaper is a Custom Research Paper Writing service based in USA that is Available 24/7 to cater your needs. We have huge experience of writing essays about every possible topic. We have access to the online libraries, peer-journals, and news sites which makes it possible to gather enough data about the topic. 

We provide the plagiarism-free and grammatically perfect essay writing service to our clients. We have written hundreds of essays so far and our clients have gained excellent results as well.

Need Assignment Help?