Question

The following information applies to the questions displayed below Amanufactured product has the following information for June 159 Standard por ) $15 perhe 511 perc) Det mat Dodbor Overhead Units manufactured Actu 59.10 por 515 50 per 40.900 lbs 23.900 5274.000 Award 4.00 points Compute the direct materials price variance and the direct materials quantity variance Indicate whether each variance is favorable or unfavorable AO SO AP SP Actual Quantity Standard Quantity Actual Price Standard Price Actual Cost Standard Cost

Answer 1

Direct material price variance = (SP-AP)*SQ

= (9-9.10)*40900 = $4090Unfavorable

Direct material quantity variance = (SQ-AQ)*SP

= (8100*5-40900)*9 = 3600 unfavorable

Labor rate variance = (SR-AR)*AH

= (15-15.50)*23900 = 11950 unfavorable

Labor efficiency variance = (SH-AH)*SR

= (8100*5-23900)*15 = $249000 favorable