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12. Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (14 pounds @ $5 per pound) $ 70 Direct labor (4 hours @ $14 per hour) 56 During May the company incurred the following actual costs to produce 8,400 units. Direct materials (120,700 pounds @ $4.80 per pound) $ 579,360 Direct labor (38,400 hours @ $14.10 per hour) 541,440 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. (2) Compute the direct labor rate variance and the direct labor efficiency variance. Camila Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (15 pounds @ $4 per pound) $60 Direct labor (3 hours @ $16 per hour) 48 During June the company incurred the following actual costs to produce 8,600 units. Direct materials (131,100 pounds @ $3.80 per pound) $498,180 Direct labor (30,400 hours @ $16.15 per hour) 490,960 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. (2) Compute the direct labor rate variance and the direct labor efficiency variance.

12. Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (14 pounds @ $5 per pound) $ 70 Direct labor (4 hours @ $14 per hour) 56 During May the company incurred the following actual costs to produce 8,400 units. Direct materials (120,700 pounds @ $4.80 per pound) $ 579,360 Direct labor (38,400 hours @ $14.10 per hour) 541,440 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. (2) Compute the direct labor rate variance and the direct labor efficiency variance. Camila Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (15 pounds @ $4 per pound) $60 Direct labor (3 hours @ $16 per hour) 48 During June the company incurred the following actual costs to produce 8,600 units. Direct materials (131,100 pounds @ $3.80 per pound) $498,180 Direct labor (30,400 hours @ $16.15 per hour) 490,960 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. (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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12. Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (14 pounds @ $5 per pound) $ 70 Direct labor (4 hours @ $14 per hour) 56 During May the company incurred the following actual costs to produce 8,400 units. Direct materials (120,700 pounds @ $4.80 per pound) $ 579,360 Direct labor (38,400 hours @ $14.10 per hour) 541,440 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. (2) Compute the direct labor rate variance and the direct labor efficiency variance. Camila Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (15 pounds @ $4 per pound) $60 Direct labor (3 hours @ $16 per hour) 48 During June the company incurred the following actual costs to produce 8,600 units. Direct materials (131,100 pounds @ $3.80 per pound) $ 498,180 Direct labor (30,400 hours @ $16.15 per hour) 490,960 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. (2) Compute the direct labor rate variance and the direct labor efficiency variance. The following information relates to production activities of Mercer Manufacturing for the year. Actual direct materials used Actual units produced Standard quantity and price per unit for direct materials Standard quantity and rate per unit for direct labor AR Actual Rate SR Standard Rate Actual direct labor used AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP Standard Price (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate and efficiency variances. 16,600 pounds at $4.35 per pound 17,235 hours at $25 per hour 31,200 0.50 pound at $4.30 per pound 0.50 hour at $26 per hour
Transcribed Image Text:12. Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (14 pounds @ $5 per pound) $ 70 Direct labor (4 hours @ $14 per hour) 56 During May the company incurred the following actual costs to produce 8,400 units. Direct materials (120,700 pounds @ $4.80 per pound) $ 579,360 Direct labor (38,400 hours @ $14.10 per hour) 541,440 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. (2) Compute the direct labor rate variance and the direct labor efficiency variance. Camila Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (15 pounds @ $4 per pound) $60 Direct labor (3 hours @ $16 per hour) 48 During June the company incurred the following actual costs to produce 8,600 units. Direct materials (131,100 pounds @ $3.80 per pound) $ 498,180 Direct labor (30,400 hours @ $16.15 per hour) 490,960 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. (2) Compute the direct labor rate variance and the direct labor efficiency variance. The following information relates to production activities of Mercer Manufacturing for the year. Actual direct materials used Actual units produced Standard quantity and price per unit for direct materials Standard quantity and rate per unit for direct labor AR Actual Rate SR Standard Rate Actual direct labor used AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP Standard Price (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate and efficiency variances. 16,600 pounds at $4.35 per pound 17,235 hours at $25 per hour 31,200 0.50 pound at $4.30 per pound 0.50 hour at $26 per hour
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