Question

Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures Direct materials (16 lbs. Direct labor (3 hrs. $5 per lb.) 085 per mbi $14.00 per hr.) $80 During June the company incurred the following actual costs to produce 8,700 units ped Direet materials (141,300 lbs. $4.70 per lb.) Direct labor (30,400 hrs. $14.15 per hr.). $664, 110 430,160 Book AQ - Actual Quantity SQ - Standard Quantity AP = Actual Price SP = Standard Price Print AH = Actual Hours SH = Standard Hours AR - Actual Rate SR - Standard Rate References

Answer 1

Standard Cost Actual Cost AQ X АР AQ X SP SQ X SP 4.70 5.00 5,00 141300 х 141300 х 139200 х 664110 706500 696000 10500 42390 Direct Material Price Varaince Direct Material Quantity Varaince Total Direct Material Varaince favorable 42390 10500 Unfavorable favorable 31890 Actual Cost Standard Cost АН X AR АН X SR SH X SR 30400 14.00 х 14.15 30400 х 26100 X 14.00 430160 425600 365400 4560 60200 Direct Labor Rate Varaince Direct Labor Efficiency Variance Total Direct Labor Variance 4560 Unfavorable Unfavorable 60200 64760 Unfavorable SQ = 8700*16 120400 SH-8700*3 26100