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Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (15 pounds @ $4 per pound) Direct labor (3 hours @ $15 per hour) During May the company incurred the following actual costs to produce 8,400 units. Direct materials (129,500 pounds @ $3.80 per pound) Direct labor (28,600 hours @ $15.10 per hour) AR = Actual Rate SR Standard Rate AQ Actual Quantity SQ Standard Quantity AP = Actual Price SP = Standard Price $ 60 45 $ 492,100 431,860 (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance.

Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (15 pounds @ $4 per pound) Direct labor (3 hours @ $15 per hour) During May the company incurred the following actual costs to produce 8,400 units. Direct materials (129,500 pounds @ $3.80 per pound) Direct labor (28,600 hours @ $15.10 per hour) AR = Actual Rate SR Standard Rate AQ Actual Quantity SQ Standard Quantity AP = Actual Price SP = Standard Price $ 60 45 $ 492,100 431,860 (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required 1 Required 2 Compute the direct materials price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Actual Cost Required 1 Required 2 $ 0 Compute the direct labor rate varlance and the direct labor efficiency variance. (Indicate the effect each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to 2 decimal places.) Actual Cost $ 0 < Required 1 0 $ Required 2 > 0 Standard Cost Standard Cost
Transcribed Image Text:Required 1 Required 2 Compute the direct materials price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Actual Cost Required 1 Required 2 $ 0 Compute the direct labor rate varlance and the direct labor efficiency variance. (Indicate the effect each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to 2 decimal places.) Actual Cost $ 0 < Required 1 0 $ Required 2 > 0 Standard Cost Standard Cost
Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (15 pounds @ $4 per pound) Direct labor (3 hours@ $15 per hour) During May the company incurred the following actual costs to produce 8,400 units. Direct materials (129,500 pounds @ $3.80 per pound) Direct labor (28,600 hours @ $15.10 per hour) AR = Actual Rate SR Standard Rate AQ = Actual Quantity SQ Standard Quantity AP = Actual Price SP = Standard Price $ 60 45 $ 492,100 431,860 (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance.
Transcribed Image Text:Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (15 pounds @ $4 per pound) Direct labor (3 hours@ $15 per hour) During May the company incurred the following actual costs to produce 8,400 units. Direct materials (129,500 pounds @ $3.80 per pound) Direct labor (28,600 hours @ $15.10 per hour) AR = Actual Rate SR Standard Rate AQ = Actual Quantity SQ Standard Quantity AP = Actual Price SP = Standard Price $ 60 45 $ 492,100 431,860 (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance.
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