The following information describes production activities of
Mercer Manufacturing for the year.
Actual direct materials used | 24,000 lbs. at $4.45 per lb. |
Actual direct labor used | 6,505 hours for a total of $128,799 |
Actual units produced | 36,030 |
AH = Actual Hours
SH = Standard Hours
AR = Actual Rate
SR = Standard Rate
AQ = Actual Quantity
SQ = Standard Quantity
AP = Actual Price
SP = Standard Price
Budgeted standards for each unit produced are 0.50 pounds of direct
material at $4.40 per pound and 10 minutes of direct labor at
$20.80 per hour.
(1) Compute the direct materials price and
quantity variances.
(2) Compute the direct labor rate and efficiency
variances. Indicate whether each variance is favorable or
unfavorable.
Correct Answer:
Material Price Variance |
||||||
( |
Standard Rate |
- |
Actual Rate |
) |
x |
Actual Quantity |
( |
$ 4.40 |
- |
$ 4.45 |
) |
x |
24000 |
-1104 |
||||||
Variance |
$ 1,104.00 |
Unfavorable-U |
Material Quantity Variance |
||||||
( |
Standard Quantity |
- |
Actual Quantity |
) |
x |
Standard Rate |
( |
18015 |
- |
24000 |
) |
x |
$ 4.40 |
-26357.94 |
||||||
Variance |
$ 26,357.94 |
Unfavorable-U |
Requirement 2:
Labor Rate Variance |
||||||
( |
Standard Rate |
- |
Actual Rate |
) |
x |
Actual Labor Hours |
( |
$ 20.80 |
- |
$ 19.80 |
) |
x |
6505 |
6505 |
||||||
Variance |
$ 6,505.00 |
Favourable-F |
Labor Efficiency Variance |
||||||
( |
Standard Hours |
- |
Actual Hours |
) |
x |
Standard Rate |
( |
6005 |
- |
6505 |
) |
x |
$ 20.80 |
-10400 |
||||||
Variance |
$ 10,400.00 |
Unfavorable-U |
Working:
Actual DATA for |
36030 |
Units |
|
Quantity (AQ) |
Rate (AR) |
Actual Cost |
|
Direct Material |
24000 |
$ 4.45 |
$ 1,06,800.00 |
Direct labor |
6505 |
$ 19.80 |
$ 1,28,799.00 |
Standard DATA for |
36030 |
Units |
|
Quantity (SQ) |
Rate (SR) |
Standard Cost |
|
Direct Material |
18015 |
$ 4.40 |
$ 79,338.06 |
Direct labor |
6005 |
$ 20.80 |
$ 1,24,904.00 |
End of answer.
Please give a thumbs-up, it will be highly appreciated.
Thanks.
The following information describes production activities of Mercer Manufacturing for the year. Actual direct materials used...
The following information describes production activities of Mercer Manufacturing for the year. Actual direct materials used 22,000 lbs. at $4.35 per lb. 6,575 hours for a total of Actual direct labor used $128,870 Actual units produced 36,000 Budgeted standards for each unit produced are 0.50 pounds of direct material at $4.30 per pound and 10 minutes of direct labor at $20.60 per hour. AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price AH...
The following describes production activities of Mercer Manufacturing for the year. Actual direct materials used Actual direct labor used Actual units produced 31,000 lbs. at $5.80 per lb. 10,600 hours for a total of $217,300 63,000 1,600 hour. 29.9 5. IS DE $217,300 Budgeted standards for each unit produced are 0.50 pound of direct material at $5.75 per pound and 10 minutes of direct labor at $21.50 per hour. AH = Actual Hours SH = Standard Hours AR = Actual...
The following information describes production activities of Mercer Manufacturing for the year Actual direct materials used 22,880 lbs. at $4.35 per lb. 6,575 hours for a total of Actual direct labor used $128,870 Actual units produced 36,000 Budgeted standards for each unit produced are 0.50 pounds of direct material at $4.30 per pound and 10 minutes of direct laborat $20.60 per hour AQ = Actual Quantity SQ = Standard Quantity AP - Actual Pnce SP = Standard Price AH =...
The following describes production activities of Mercer Manufacturing for the year. Actual direct materials used 22,000 lbs. at $4.35 per lb. Actual direct labor used 6,575 hours for a total of $128,870 Actual units produced 36,000 Budgeted standards for each unit produced are 0.50 pound of direct material at $4.30 per pound and 10 minutes of direct labor at $20.60 per hour. AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate AQ =...
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...
The following describes production activities of Mercer Manufacturing for the year. Actual direct materials used Actual direct labor used Actual units produced 29,000 lbs. at $5.19 per lb. 8,180 hours for a total of $164,430 48,000 Budgeted standards for each unit produced are 0.50 pound of direct material at $5.05 per pound and 10 minutes of direct laborat $22.00 per hour. AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate AQ = Actual...
The following Information describes production activities of Mercer Manufacturing for the year. 2:36:56 Netual direct materials used Actual direct labor used Actual units produced 23,000 lbs. at $4.40 per lb. 6,580 hours for a total of $129,626 36.000 Book Budgeted standards for each unit produced are 0.50 pounds of direct material at $4.20 per pound and 10 minutes of direct laborat $20.70 per hour. Print AQ - Actual Quantity SQ - Standard Quantity AP Actual Price SP = Standard Price...
The following describes production activities of Mercer Manufacturing for the year. Actual direct materials used Actual direct labor used Actual units produced 29,000 lbs. at $5.10 per lb. 8,100 hours for a total of $164,430 48,000 Budgeted standards for each unit produced are 0.50 pound of direct material at $5.05 per pound and 10 minutes of direct labor at $22.00 per hour AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate AQ =...
The following information describes production activities of Mercer Manufacturing for the year. Actual direct materials used Actual direct labor used Actual units produced 32,000 1bs. at $5.85 per lb. 10,610 hours for a total of $218,566 63,030 Budgeted standards for each unit produced are 0.50 pounds of direct material at $5.80 per pound and 10 minutes of direct labor at $21.60 per hour. AQ-Actual Quantity SQ Standard Quantity AP-Actual Price SP Standard Price AH Actual Hours SH Standard Hours AR...
8-15 The following information describes production activities of Mercer Manufacturing for the year. Actual direct materiaïs used Actual direct labor used 32,000 Ïbs. at ș5.85 per lb. 10,610 hours for a total of $218,566 63,030 Actual units produced Budgeted standards for each unit produced are 0.50 pounds of direct material at $5.80 per pound and 10 minutes of direct labor at $21.60 per hour. AQ Actual Quantity SQ Standard Quantity AP- Actual Price SP Standard Price AH Actual Hours SH-Standard...