Question

Required information The following information applies to the questions displayed below.) A manufactured product has the following information for June. Direct materials Direct labor Overhead Units manufactured Standard (6 lbs. @ $8 per lb.) (3 hrs. @ $17 per hr.) (3 hrs. @ $12 per hr.) Actual 50, 900 lbs. @ 58.20 per lb. 24,900 hrs. @ $17.50 per hr. $309, 200 8,400 Compute the direct materials price variance and the direct materials quantity variance Indicate whether each w unfavorable AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP Standard Price Standard Cost Actual Cost 2025 or 27 # Next > < Prey

Answer 1

Answer

• [1]

Actual Cost								Standard Cost
AQ	x	AP		AQ	x	SP		SQ	x	SP
50,900	x	$                     8.20		50,900	x	$            8.00		50,400	x	$               8.00
	$                    417,380.00				$               407,200.00				$                   403,200.00
Price Variance - Material			$               10,180.00	Quantity Variance - Material			$                 4,000.00

Direct material Price Variance	$               10,180.00	Unfavourable
Direct material Quantity Variance	$                 4,000.00	Unfavourable
Total Direct material Variance	$               14,180.00	Unfavourable

• [2]

Actual Cost								Standard Cost
AH	x	AR		AH	x	SR		SH	x	SR
24,900	x	$                17.50		24,900	x	$        17.00		25,200	x	$              17.00
	$          435,750.00				$     423,300.00				$           428,400.00
Rate Variance - Labor			$       12,450.00	Efficency Variance - Labor			$         5,100.00

Labor Rate Variance	$       12,450.00	Unfavourable
Labor Efficiency Variance	$         5,100.00	Favourable
Total Labor Cost [Spending] Variance	$         7,350.00	Unfavourable