Question

Required information The following information applies to the questions displayed below Part 2 of 3 A manufactured product has the following information for June. 9.09 points Actual Standard (6 lbs. s8 per lb.) (2 hrs.$16 per hr.) (2 hrs. $12 per hr.) 48,500 1bs. s.10 per 1b. 15,700 hrs. $16.50 per hr. $198,000 8,000 Direct materials Direct labor Skipped Overhead Units manufactured efook Compute the direct materials price variance and the direct materials quantity varlance. Indicate whether each variance is favorable or unfavorable. Hint AQ Actual Quantity sQ Standard Quantity AP Actual Price SP Standard Price Print Standard Cost Actual Cost References S 0

Answer 1

Answer : 1)

AQ X Actual Cost AQ X 48500 X 392850 AP 8.10 SP 8.00 Standard Cost SQ X 48000 384000 SP 8.00 48500 388000 4850 4000 4850 Direct Material Price Varaince Direct Material Quantity Varaince Total Direct Material Varaince 4000 8850 Unfavorable Unfavorable Unfavorable Actual Cost AH 15700 259050 AR 16.50 AH 157001 X X 251200 SR 16.00 Standard Cost SH X 16000 256000 SR 16.00 7850 4800 Direct Labor Rate Varaince Direct Labor Efficiency Variance Total Direct Labor Variance 7850 4800 3050 Unfavorable Favorable Unfavorable

Answer : 2)

Actual Cost AQ X X 138000 517500 AP 3.75 AQ 138000 SP 4.00 Standard Cost SQ | 135000 540000 12000 SP 4.00 X 552000 34500 Direct Material Price Varaince Direct Material Quantity Varaince Total Direct Material Varaince 34500 12000 22500 favorable Unfavorable favorable Actual Cost X 31000 X 468100 AR 15.10 LAH 31000 X L SRL X 15.00 465000 Standard Cost SH X 27000 405000 SR 15.00 3100 60000 Direct Labor Rate Varaince Direct Labor Efficiency Variance Total Direct Labor Variance 3100 60000 63100 Unfavorable Unfavorable Unfavorable