Amber Company produces iron table and chair sets. During October, Amber's costs were as follows: $ 2.90 per lb. $ 8.10 per hour $ 2.70 per lb. 1,030,000 lbs. 21,000 1,275,000 lbs. 16,000 1,060,000 lbs. $6,080 F 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. Compute the direct materials price variance based on quantity purchased. 3. Calculate the direct materials quantity variance based on quantity used.

Amber Company produces iron table and chair sets. During October, Amber's costs were as follows: $ 2.90 per lb. $ 8.10 per hour $ 2.70 per lb. 1,030,000 lbs. 21,000 1,275,000 lbs. 16,000 1,060,000 lbs. $6,080 F 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. Compute the direct materials price variance based on quantity purchased. 3. Calculate the direct materials quantity variance based on quantity used.

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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