Exercise 21 11 Direct Materials And Direct Labor Variances Lo P3 Hutto Corp Has Set The Following Standard Direct Mater 1 (43.42 KiB) Viewed 54 times
Exercise 21-11 Direct materials and direct labor variances LO P3 Hutto Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. Direct materials (16 lbs. @ $4 per lb.) Direct labor (4 hrs. @ $15 per hr.) $64 60 During May the company incurred the following actual costs to produce 8,300 units. Direct materials (135,700 lbs. @ $3.80 per lb.) Direct labor (36,500 hrs. @ $15.10 per hr.). $515,660 551,150 AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price (1) Compute the direct materials price and quantity variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) (2) Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round "Rate per hour" answers to 2 decimal places.)
Required 1 Required 2 Compute the direct materials price and quantity variances. Indicate whether each variance is favorable or unfavorable. Actual Cost Standard Cost X AP AQ X AP SQ X SP AQ 135,700 х 135,700 X X $ 0 $ 0 $ 0 Direct materials price variance Direct materials quantity variance Total direct materials variance 0 Required 1 Required 2 >
Required 1 Required 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 AH X AR AH х SR SH SR х х $ 0 $ 0 $ 0 Direct labor rate variance Direct labor efficiency variance 0 Total direct labor variance < Required 1 Required 2 >
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!