Exercise 21-15 Direct materials and direct labor variances LO P2 The following i

Question

Exercise 21-15 Direct materials and direct labor variances LO P2 The following information describes production activities of Mercer Manufacturing for the year: Actual direct materials used Actual direct labor used Actual units produced 16,000 lbs. at $4.05 per lb 5,545 hours for a total of $105,355 30,000 Budgeted standards for each unit produced are 0.50 pounds of direct material at $4.00 per pound and 10 minutes of direct labor at $20 per hour. (Do not round intermediate calculations.) (1) Compute the direct materials price and quantity variances Actual Cost Standard Cost AQ AP AQ SP SQ SP This is a numeric cell, so pleae enter numbers only Direct materials price variance Direct materials quantity variance Total variable overhead cost variance

Explanation / Answer

a) Direct material price and quantity variance

a) Direct labour price and efficiency variance

Actual cost Standard cost AQ AP AQ*AP AQ SP AQ*SP SQ SP SQ*AP 16000 4.05 64800 16000 4 64000 15000 4 60000 800 4000 Material price variance 800 Unfavorable Material quantity variance 4000 Unfavorable Material cost variance 4800 Unfavorable

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.