Required 1 Required 2Compute the direct materials price and quantity variances.Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.Actual Cost$0$00$0Required 2Standard Cost Lucia Company has set the following standard cost per unit for direct materials and direct labor.Direct materials (16 pounds @ $5 per pound)Direct labor (4 hours @ $14 per hour)During May the company incurred the following actual costs to produce 8,300 units.Direct materials (134,900 pounds @ $4.80 per pound)Direct labor (36,300 hours @ $14.10 per hour)$ 647,520511,830AR = Actual RateSR = Standard RateAQ = Actual QuantitySQ = Standard QuantityAP = Actual PriceSP = Standard PriceAH = Actual HoursSH = Standard Hours$ 8056(1) Compute the direct materials price and quantity variances.(2) Compute the direct labor rate variance and the direct labor efficiency variance.

Name: Required 1 Required 2Compute the direct materials price and quantity
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Description: Required 1 Required 2Compute the direct materials price and quantity variances.Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.Actual Cost$0$00$0Required 2Standard Cost Lucia Company has set the followi

The material variance is the variation between the actual cost of materials employed in production…

Answered: (1) Compute the direct materials price…

Business

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(1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

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
$
0
$
0
0
$
0
Required 2
Standard Cost

Lucia Company has set the following standard cost per unit for direct materials and direct labor.
Direct materials (16 pounds @ $5 per pound)
Direct labor (4 hours @ $14 per hour)
During May the company incurred the following actual costs to produce 8,300 units.
Direct materials (134,900 pounds @ $4.80 per pound)
Direct labor (36,300 hours @ $14.10 per hour)
$ 647,520
511,830
AR = Actual Rate
SR = Standard Rate
AQ = Actual Quantity
SQ = Standard Quantity
AP = Actual Price
SP = Standard Price
AH = Actual Hours
SH = Standard Hours
$ 80
56
(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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