Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures.             Direct materials (14 lbs. @ $4 per lb.)     $56   Direct labor (2 hrs. @ $14 per hr.)     28     During June the company incurred the following actual costs to produce 8,900 units.             Direct materials (126,900 lbs. @ $3.75 per lb.)   $ 475,875   Direct labor (22,400 hrs. @ $14.15 per hr.).     316,960     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.)

Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (14 pounds @ $4 per pound) Direct labor (4 hours @ $14 per hour) $ 56 56 During May the company incurred the following actual costs to produce 8,600 units. Direct materials (123,200 pounds @ $3.80 per pound) Direct labor (38,700 hours @ $14.10 per hour) AR Actual Rate SR Standard Rate AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP Standard Price AH = Actual Hours SH Standard Hours $ 468,160 545,670 (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct materials price and quantity variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Actual Cost Standard Cost < Prev 8 of 8 Next

R Ltd. produces a product with the following costs as of July 1, 20XX: Material Labour Overhead $5 per unit 7 per unit 5 per unit Assuming R sold 26,000 units during the last six months of the year at $22 each, beginning inventory at these costs on July 1 was 8,000 units. From July 1 to December 31, 20XY, R produced 20,000 units. These units had a material cost of $6 per unit. The costs for labour and overhead were the same. a. If R uses FIFO inventory accounting, what would be the gross profit for the period? Gross profit b. If R uses FIFO inventory accounting, What is the value of ending inventory? Ending inventory

Lucia Company has set the following standard cost per unit for direct materials and direct labor.  Direct materials (16 pounds @ $3 per pound) $ 48 Direct labor (3 hours @ $15 per hour) 45 During May the company incurred the following actual costs to produce 8,100 units.  Direct materials (133,600 pounds @ $2.80 per pound) $ 374,080 Direct labor (29,200 hours @ $15.10 per hour) 440,920 AR = Actual RateSR = Standard RateAQ = Actual QuantitySQ = Standard QuantityAP = Actual PriceSP = Standard Price(1) Compute the direct materials price and quantity variances.(2) Compute the direct labor rate variance and the direct labor efficiency variance.

The following data relates to Koontz Corporation's operations for the month. 1,000 finished units of product were produced and the normal monthly capacity is 2,200 direct labor hours. Standard Total Unit Actual Costs Costs Direct Material: Standard (2 lb. @ $10/lb.) Actual (2,200 lb. @ $9.80/lb.) Direct Labor: Variable Overhead: Standard (2 hr. @ $20/hr.) Actual (2,400 hrs. @ $20.20/hr.) Total What is the labor rate variance? Standard (0.5 hr. @ $4/hr.) Actual Select one: O O O O b. a. 400 U $400 F C. $480 U d. $480 F e. None of the above $20 $40 $2 $21,560 $48,480 $8,700 $62 $78,740

Camila 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 @ $14 per hour) During June the company incurred the following actual costs to produce 8,700 units. Direct materials (133,500 pounds @ $3.70 per pound) $493,950 416,060 Direct labor (29,300 hours @ $14.20 per hour) AR = Actual Rate SR = Standard Rate AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price $60 42 (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance.

A company uses the following standard costs to produce a single unit of output. 6 pounds at $0.60 per pound 0.5 hour at $9.00 per hour = 0.5 hour at $4.30 per hour = Direct materials Direct labor Manufacturing overhead During the latest month, the company purchased and used 57,000 pounds of direct materials at a price of $0.70 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $42,369 based on 4,870 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $18,500 and fixed manufacturing overhead incurred was $18,000. Based on this information, the direct labor efficiency variance for the month was: Multiple Choice $2,631 favorable $1,461 favorable $1,170 unfavorable $1,170 favorable $ 3.60 $ 4.50 $ 2.15 $1,461 unfavorable

The following direct materials and direct labor data pertain to the operations of Engles Manufacturing Company for the month of August. Costs Actual labor rate   $13  per hour Actual materials price   $128  per ton Standard labor rate   $12.50  per hour Standard materials price   $130  per ton   Quantities Actual hours incurred and used   4,150 hours Actual quantity of materials purchased and used   1,220 tons Standard hours used   4,300 hours Standard quantity of materials used   1,200 tons The total, price, and quantity variances for materials and labor are as follows: Total materials variance   $160 Unfavorable Materials price variance   $2,440 Favorable Materials quantity variance   $2,600 Unfavorable Total labor variance   $200 Unfavorable Labor price variance   $2,075 Unfavorable Labor quantity variance   $1,875 Favorable (b)Provide two possible explanations for each of the unfavorable variances given above, and suggest where…

Antuan Company set the following standard costs for one unit of its product.        Direct materials (5.0 Ibs. @ $5.00 per Ib.) $ 25.00 Direct labor (1.9 hrs. @ $12.00 per hr.)   22.80 Overhead (1.9 hrs. @ $18.50 per hr.)   35.15 Total standard cost $ 82.95   The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume of 75% of the factory’s capacity of 20,000 units per month. Following are the company’s budgeted overhead costs per month at the 75% capacity level.  Overhead Budget (75% Capacity) Variable overhead costs           Indirect materials $ 15,000       Indirect labor   75,000       Power   15,000       Repairs and maintenance   45,000       Total variable overhead costs       $ 150,000 Fixed overhead costs           Depreciation—Building   24,000       Depreciation—Machinery   71,000       Taxes and insurance   17,000       Supervision   265,250       Total fixed overhead costs         377,250…

It takes 100,000 direct labor hours to manufacture the product. Total overhead for the product is $400,000. Using the traditional cost method of direct labor hours, what is the predetermined overhead rate? $0.25 per direct labor hour $4.00 per direct labor hour $4.50 per direct labor hour $3.80 per direct labor hour