Question

Check my work Keea corp. nas set the following standard direct matenais and direct labor costs per unit for the product it manufactures. Direct materials (15 lbs. $5 per lb.) Direct labor (3 hrs. $16.00 per hr.) $75 48 During June the company incurred the following actual costs to produce 8,800 units. Direct materials (134, 100 lbs. $4.75 per lb.) Direct labor (30,600 hrs $16.10 per hr.). $636,975 492.660 AQ = Actual Quantity SQ - Standard Quantity AP = Actual Price SP - Standard Price AH - Actual Hours SH - Standard Hours AR - Actual Rate SR - Standard Rate (1) Compute the direct materials price and quantity variances, (2) Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable. Complete this question by entering your answers in the tabs below. Required 1 Required 2

Answer 1

X SP Actual Cost AQ I X 134100 636975 AP 4.75 АО 134100 Standard Cost SQL X 132000 X 660000 SP 5.00 5.00 670500 33525 10500 Direct Material Price Varaince Direct Material Quantity Varaince Total Direct Material Varaince 33525 10500 23025 Favorable Unfavorable Favorable

L х Actual Cost LAH XAR 30600 x 16.10 492660 AH 30600 X L X 489600 SR 16.00 Standard Cost SH SR 26400 X 16.00 422400 3060 67200 Direct Labor Rate Varaince Direct Labor Efficiency Variance Total Direct Labor Variance 3060 67200 70260 Unfovarable Unfavorable Unfavorable