A manufactured product has the following information for June. Standard Quantity and Cost Actual Results Direct materials 6 pounds @ $8 per pound 48,500 pounds @ $8.10 per pound Direct labor 2 DLH @ $16 per DLH 15,700 hours @ $16.50 per hour Overhead 2 DLH @ $12 per DLH $ 198,000 Units manufactured 8,000 units Compute the (1) direct materials price variance and (2) direct materials quantity variance. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Roun

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A manufactured product has the following
information for June. Standard Quantity and
Cost Actual Results Direct materials 6 pounds
@ $8 per pound 48,500 pounds @ $8.10 per
pound Direct labor 2 DLH @ $16 per DLH
15,700 hours @ $16.50 per hour Overhead 2
DLH @ $12 per DLH $ 198,000 Units
manufactured 8,000 units Compute the (1)
direct materials price variance and (2) direct
materials quantity variance. Note: Indicate the
effect of each variance by selecting favorable,
unfavorable, or no variance. Roun
Transcribed Image Text:A manufactured product has the following information for June. Standard Quantity and Cost Actual Results Direct materials 6 pounds @ $8 per pound 48,500 pounds @ $8.10 per pound Direct labor 2 DLH @ $16 per DLH 15,700 hours @ $16.50 per hour Overhead 2 DLH @ $12 per DLH $ 198,000 Units manufactured 8,000 units Compute the (1) direct materials price variance and (2) direct materials quantity variance. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Roun
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