Question

Hutto Corp, has set the following standard direct materials and direct labor costs per unit for the product it manufactures.
question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct materials price and quantity va
Complete this question by entering your answers in the tabs below. Required: Required 2 Compute the direct labor rate varianc
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Answer #1

Actual Cost AQ SP AP X AQ Standard Cost SQ Х SP 123,000 $4 х lbs $3.90 х $4 126,000 lbs 126,000 lbs $478.800 $25,200 $504 poo* Standard Quantity fou Actual Output = 15165 X 8200 units 123,000lbs

Note:

• The material price variance is favourable because the actual price is less than the estimated/standard price.

• The material quantity variance is an unfavourable variance because the actual quantity used is more than the standard quantity for produce 8200 units

• Total direct material variance

= Standard cost - Actual cost

= $492,000 - $478,800

= $13,200(Favourable)

12 Actual lost Slandard Cost SH X SR AH X AR AH X SR 28,000 hrs x $15.10 28,000 had $15 24,600 hos х $15 $422,800 2800 $420,0* Standard Howu fou Actual output 3hrs X 8200 units 24,600hrs =

Note:

• The direct labor rate variance is an unfavourable variance because the actual rate is more than the budgeted/standard rate.

• The direct labor effeciency variance is an unfavourable variance because the actual hrs worked is more the standard hours .

• Total direct labor variance

= Standard cost - Actual cost

= $369,000 - $422,800

= $53,800 (unfavourable)

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