Amber Company produces iron table and chair sets. During October, Amber's costs were as follows: Actual purchase price Actual direct labor rate Standard purchase price Standard quantity for sets produced Standard direct labor hours allowed Actual quantity purchased in October Actual direct labor hours Actual quantity used in October Direct labor rate variance Required: 1. Calculate the total cost of purchases for October. $ 2.80 per pound $ 8.00 per hour $ 2.60 per pound 1,020,000 pounds 21,000 1,265,000 pounds 15,000 1,050,000 pounds $6,000 F 2. Compute the direct materials price variance based on the actual quantity purchased. 3. Calculate the direct materials quantity variance based on the actual quantity used. 4. Compute the standard direct labor rate for October. 5. Compute the direct labor efficiency variance for October.
Amber Company produces iron table and chair sets. During October, Amber's costs were as follows: Actual purchase price Actual direct labor rate Standard purchase price Standard quantity for sets produced Standard direct labor hours allowed Actual quantity purchased in October Actual direct labor hours Actual quantity used in October Direct labor rate variance Required: 1. Calculate the total cost of purchases for October. $ 2.80 per pound $ 8.00 per hour $ 2.60 per pound 1,020,000 pounds 21,000 1,265,000 pounds 15,000 1,050,000 pounds $6,000 F 2. Compute the direct materials price variance based on the actual quantity purchased. 3. Calculate the direct materials quantity variance based on the actual quantity used. 4. Compute the standard direct labor rate for October. 5. Compute the direct labor efficiency variance for October.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Amber Company produces iron table and chair sets. During October, Amber's costs were as follows:
Actual purchase price
Actual direct labor rate
Standard purchase price
Standard quantity for sets produced
Standard direct labor hours allowed
Actual quantity purchased in October
Actual direct labor hours
Actual quantity used in October
Direct labor rate variance
Required:
1. Calculate the total cost of purchases for October.
$ 2.80 per pound
$ 8.00 per hour
$ 2.60 per pound
1,020,000 pounds
21,000
1,265,000 pounds
15,000
1,050,000 pounds
$6,000 F
2. Compute the direct materials price variance based on the actual quantity purchased.
3. Calculate the direct materials quantity variance based on the actual quantity used.
4. Compute the standard direct labor rate for October.
5. Compute the direct labor efficiency variance for October.
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