Question

The following Information describes production activities of Mercer Manufacturing for the year. 2:36:56 Netual direct materials used Actual direct labor used Actual units produced 23,000 lbs. at $4.40 per lb. 6,580 hours for a total of $129,626 36.000 Book Budgeted standards for each unit produced are 0.50 pounds of direct material at $4.20 per pound and 10 minutes of direct laborat $20.70 per hour. Print AQ - Actual Quantity SQ - Standard Quantity AP Actual Price SP = Standard Price AH = Actual Hours SH - Standard Hours AR - Actual Rate SR Standard Rate (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct materials price and quantity variances. (Do not round intermediate calculations.) < Prev 11 of 17 ! Next >

Answer 1

Solutions:

N O P Q U V W X Y 7K SK | Actual Cost AQL * 23000 $101,200.00 AP $4.40 Direct Material Cost Variance Standard cost for actual quantity AQ * SP 23000 + | $4.20 $96,600.00 Standard Cost | SQL * SP 18000 $4.20 $75,600.00 $21,000.00 $4,600.00 Direct Material Price Variance Direct Material Qty variance Total Direct material Cost variance $4,600.00 Unfavorable $21,000.00 Unfavorable 25,600.00 Unfavorable Actual Cost * * $129,626.00 AR $19.70 Direct Labor Cost Variance Standard cost for actual quantity AHL * SR 6580 $20.70 $136,206.00 6580 Standard Cost SHL * SR | 6000 $20.70 $124,200.00 $12,006.00 $6,580.00 Direct Labor rate Variance Direct Labor Efficiency variance Total Direct Labor Cost variance $6,580.00 Favorable $12,006.00 Unfavorable 5,426.00 Unfavorable 34 -119 (9) Sheet688 ) Sheet693 Sheet36 (25) Sheet93 (2)