Question

Required information The following information applies to the questions displayed below) A manufactured product has the following information for June Standard Actual Direct materials (7 lbs. @ $7 per lb.) 58,600 lbs. @ $7.10 per lb. Direct labor (3 hrs. $15 per hr.) 24,600 hrs. $15.50 per hr. Overhead (3 hrs. 512 per hr.) $304,100 Units manufactured 8,300 Compute the direct materials price variance and the direct materials quantity variance Indicate whether each variance is favorable or unfavorable AQ - Actual Quantity SQ - Standard Quantity AP - Actual Price SP - Standard Price nces Actual Cost Standard Cost

Answer 1

Actual Cost								Standard cost
AQ	AP	AQ*AP		AQ	SP	AQ*SP		SQ	SP	SQ*SP
58600	7.10	416060		58600	7	410200		58100	7	406700
			5860				3500
Material price variance				5860	Unfavorable
Material quantity variance				3500	Unfavorable
Total material variance				9360	Unfavorable