Answer:- 1)- Material price variance =$26840 Favorable
Material Quantity variance = $11000 Unfavorable
Explanation-
Material price variance = (Standard price – Actual price) * Actual quantity used
= ($5.00 per lb. - $4.80 per lb.)*134200 lbs.
= $26840 Favorable
Material Quantity variance = (Standard Quantity- Actual Quantity)*Standard price
=(132000 lbs. – 134200 lbs.)*$5.00 per lbs.
= $11000 Unfavorable
Where:-
Standard Quantity = No. of lb. per unit*Actual output
=15 lbs. per unit *8800 units =132000 lbs.
2)- Direct Labor rate variance = $4500 Unfavorable
Direct Labor Efficiency variance = $57600 Unfavorable
Explanation-
Direct Labor rate variance = (Standard rate – Actual rate) * Actual hours
= ($16.00 per hour - $16.15 per hour)* 30000 hours
= $4500 Unfavorable
Direct Labor Efficiency variance=(Standard hours-Actual hours)*Standard rate per hour
=(26400 hours – 30000 hours)*$16.00 per hour
= $57600 Unfavorable
Where:-
Standard Hours = No. of hours per unit*Actual output
= 3 hours per unit *8800 units =26400 hours
Reed Corp. has set the following standard direct materials and direct labor costs per unit for...
Reed Corp. has set the following standard direct materials and
direct labor costs per unit for the product it
manufactures.
Direct materials (16 lbs. @ $5 per lb.) $80
Direct labor (4 hrs. @ $15 per hr.) $60
During June the company incurred the following actual costs to
produce 9,000 units.
Direct materials (146,700 lbs. @ $4.75 per lb.) $696,825
Direct labor (40,300 hrs. @ $15.10 per hr.). $608,530
AH = Actual Hours
SH = Standard Hours
AR = Actual...
Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. Direct materials (10 lbs. @ $3 per lb.) Direct labor (2 hrs. @ $12 per hr.) $30 24 During June the company incurred the following actual costs to produce 9,000 units. Direct materials (92,000 lbs. @ $2.95 per lb.) Direct labor (18,800 hrs. @ $12.05 per hr.) $ 271,400 226,540 AH = Actual Hours SH = Standard Hours AR =...
Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. Direct materials (16 lbs. @ $4 per lb.) $64 Direct labor (2 hrs. @ $15 per hr.) 30 During June the company incurred the following actual costs to produce 8,700 units. Direct materials (141,300 lbs. @ $3.80 per lb.) $ 536,940 Direct labor (20,600 hrs. @ $15.15 per hr.). 312,090 AH = Actual Hours SH = Standard Hours AR =...
Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. $42 Direct materials (14 lbs. @ $3 per lb.) Direct labor (3 hrs. @ $15 per hr.) 45 During June the company incurred the following actual costs to produce 9,000 units. Direct materials (128,900 lbs. @ $2.80 per lb.) Direct labor (31,000 hrs. @ $15.20 per hr.). $360,920 471,200 AH = Actual Hours SH = Standard Hours AR = Actual...
Reed Corp, has set the following standard direct materials and direct labor costs per unit for the product it manufactures. Direct materials (16 lbs. @ 54 per lb.) Direct labor (4 hrs. $15 per hr.) During June the company incurred the following actual costs to produce 8.400 units Direct materials (136.700 lbs. 33.70 per lb.) Direct labor (37,200 hrs. $15.10 per hr.). $505,790 561, 720 AH = Actual Hours SH Standard Hours AR Actual Rate SR Standard Rate AO -...
Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. Direct materials (10 lbs. $3 per lb.) Direct labor (2 hrs. $12 per hr.) points During June the company incurred the following actual costs to produce 9,000 units. Bo Direct materials (92,000 lbs. $2.95 per lb.) Direct labor (18.00 hrs. $12.05 per he.) $271.000 226,340 int P References AQ - Actual Quantity SQ - Standard Quantity AP - Actual Price...
Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. Direct materials (14 lbs. $4 per lb.) Direct labor (3 hrs. $14.00 per hr.) $56 During June the company incurred the following actual costs to produce 8,800 units. Direct materials (126,200 lbs. @ $3.70 per lb. ) Direct labor (30,400 hrs. $14.10 per hr.). $466,940 428,640 AQ = Actual Quantity SQ - Standard Quantity AP = Actual Price SP -...
Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. Direct materials (14 lbs. $4 per lb.) Direct labor (3 hrs. $14.00 per hr.) $56 During June the company incurred the following actual costs to produce 8,800 units. Direct materials (126,200 lbs. @ $3.70 per lb. ) Direct labor (30,400 hrs. $14.10 per hr.). $466,940 428,640 AQ = Actual Quantity SQ - Standard Quantity AP = Actual Price SP -...
Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures Direct materials (15 lbs. $5 per lb.) Direct labor (3 hrs. $15 per hr.) During June the company incurred the following actual costs to produce 8,300 units. Direct materials (127,200 lbs. 54.80 per lb.) Direct labor (28.900 hrs. $15.20 per hr.). 5610,560 439.289 AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price AH...
Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures Direct materials (15 lbs. @ $5 per lb.) Direct labor (3 hrs. $15 per hr.) During June the company incurred the following actual costs to produce 8,300 units. Direct materials (127, 200 lbs. @ $4.80 per lb.) Direct labor (28,900 hrs. @ $15.20 per hr.). $61.560 439,230 AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP...