Sanchez Company\'s output for the current period was assigned a $422,000 standar

Question

Sanchez Company's output for the current period was assigned a $422,000 standard direct labor cost. The direct labor variances included a $10,550 unfavorable direct labor rate variance and a $4,220 favorable direct labor efficiency variance. What is the actual total direct labor cost for the current period? $407,230. $436,770. $432,550. $428,330. $415,670.

Fletcher Company collected the following data regarding production of one of its products. Compute the direct materials quantity variance. Direct materials standard (6 lbs. @ $2/lb.) $12 per finished unit Actual direct materials used 303,500 lbs. Actual finished units produced 50,000 units Actual cost of direct materials used $604,470 $7,000 unfavorable. $2,530 favorable. $4,470 unfavorable. $4,470 favorable. $2,530 unfavorable.

Explanation / Answer

a) Standard direct labour cost = 422000

Net labour variance = 10550 unfavorable +4220 Favorable labour efficiency variance = 6330 Unfavorable

Actual direct labour cost = 422000+6330 = 428330

So answer is d) 428330

b) Direct material quantity variance = (50000*6-303500)*2 = 7000 Unfavorable

so answer is a) $7000 Unfavorable

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