Question

Part of your company’s accounting database was destroyed when Godzilla attacked the city. You have been able to gather the following data from your files. Reconstruct the remaining information using the available data. All of the raw material purchased during the period was used in production. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Round "per unit" answer values to 2 decimal places.)

  

Direct Labor Direct Material Standard price or rate per unit of input per hour    $14.00 per lb Standard quantity per unit of output hours per unit lbs per unit Actual quantity used per unit of output 2.50 hours lbs per unit Actual price or rate per unit of input $18.00 per hour $13.00 per lb Actual output 8,500 units 8,500 units Direct-material price variance $61,200 F Direct-material quantity variance Total direct-material variance $44,400 F Direct-labor rate variance Direct-labor efficiency variance $72,250 F Total direct-labor variance $51,000 F

Answer 1

	Direct Labor		Direct Material
Standard price or rate per unit of input	17	per hour	$14.00	per lb
Standard quantity per unit of output	3	hours per unit	7.06	lbs per unit
Actual quantity used per unit of output	2.5	hours	7.2	lbs per unit
Actual price or rate per unit of input	$18.00	per hour	$13.00	per lb
Actual output	8,500	units	8,500	units
Direct-material price variance			$61,200	F
Direct-material quantity variance			$16,800	A
Total direct-material variance			$44,400	F
Direct-labor rate variance	$21,250	A
Direct-labor efficiency variance	$72,250	F
Total direct-labor variance	$51,000	F