8 A3
Barber Brass manufactures trumpets, trombones, tubas, and other brass instruments. The following standards were developed for a line of trumpets.
Standard Inputs Expected For Each Standard Price per
Unit of Output Achieved Unit of Input
Direct materials 5 pounds $10 per pound
Direct labor 10 hours $25 per hour
During April, Barber scheduled 550 trumpets for production. However, the company produced only 525.
Barber purchased and used 3,100 pounds of direct materials at a unit price of $8.50 per pound. It used 5,500 hours of direct labor at an actual rate of $26.00 per hour.
1. Compute the standard cost per trumpet for direct materials and direct labor.
2. Compute the price variances and quantity variances for direct materials and direct labor.
3. Based on there sketchy data, what clues for investigation are provided by the variances?