please answer: Easy Roller, Inc., manufactures plastic mats to use with rolling

Question

please answer:

Easy Roller, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Easy Roller had the following actual results for the past year. Required: Calculate Easy Roller's direct materials price and quantity variances. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect(i.e., Zero variance). Do not round intermediate calculations. Omit the "$" sign in your response.)

Explanation / Answer

Hi,

Please find the answer as follows:

Part A:

Direct Labor Price Variance = Actual Hours*(Actual Rate - Standard Rate) = 319000*(5486800/319000 - 18) = 255200 (F)

Direct Labor Effciency Variance = Standard Rate*(Actual Hours - Standard Hours) = 18*(319000 - 1090000*.30) = 144000 (F)

Thanks.

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