Question

Required information The following information applies to the questions displayed below.) A manufactured product has the following information for June. Port 2013 Per 200 Actual lbs. @ $8.10 per 48,500 Direct materials points Standard (6 lbs. $8 per lb.) (2 hrs. @ $16 per hr.) (2 hrs. @ $12 per hr.) Direct labor 15,700 hrs. @ $16.50 per 15,790 hr. Overhead Units manufactured $198,000 8,000 Compute the direct materiais 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 Actual Cost Standard Cost $ 0 5 op 0

Answer 1

Direct materials
Actual Cost(A)				Standard Cost for Actual Quantity (B)				Standard Cost( C)
AQ(1)	AP(2)	Total(1*2)		AQ(1)	SP(2)	Total(1*2)		SQ(1)	SP(2)	Total(1*2)
48500	$8.10	$3,92,850.00		48500	$8.00	$3,88,000.00		48000(6*8000)	$8.00	$3,84,000.00
Direct Materials Price Variance(B-A)				-$4,850.00	unfavourable
($388000-$392850)
Direct Materials Quantity Variance(C-B)				-$4,000.00	unfavourable
($384000-$388000)