Question

The following information desaribes production activities of Mercer Manufacturing for the year: Actual direct materials Actual direct labor used Actual units produced 29,000 lbs. at S5.10 per lb. 8,100 hours for a total of $164,430 48,000 Budgeted standards for each unit produced are 0.50 pounds of direct material at S5.05 per pound and 10 minutes of direct labor at S22.00 per hour (1) Compute the direct materials price and quantity variances. (Do not round intermediate calculations.) Actual Cost Standard Cost AP SP SQ SP materials price variance materials quantity variance able able able Total direct materials variance 2) Compute the direct labor rate and efficiency varianoes. Indicate whether each variance is favorable or unfavorable. (Do not round intermediate calculations.) Actual Cost Standard Cost AH AR AH SR SH SR irect labor rate variance Favorable labor efficiency variance ble Total direct labor variance Favorable