Dadror h t th fall standard direct materials and direct labor costs per unit for

Question

Dadror h t th fall standard direct materials and direct labor costs per unit for the product it manufactures Chegg Study Guided Solutions and Study Help | Chegg.com Direct materials (15 lbs. $5 per lb.) Direct labor (3 hrs. e $15 per hr. $75 During June the company incurred the following actual costs to produce 8,800 units Direct materials (135,000 lbs.$4.70 per lb.) Direct labor (30,700 hrs. $15.15 per hr 634,500 465,105 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 Actual Cost Standard Cost 0 0

Explanation / Answer

(1) Material variances are shown below.

(2) Labor cost variances are shown below

Actual cost Standard Cost AQ X AP AQ X SP SQ X SP 135000 X     4.70 135000 X        5.00 132000 X 5.00 634500 675000 660000 Material Price variane -40500 Material quantity variance 15000 Material price variance 40500 Favourable Material quantity variance 15000 Unfavourble Total Material cost variance 25500 Favourable

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