Camila Company has set the following standard cost per unit for direct materials and direct labor. $75 Direct materials (15 pounds @ $5 per pound) Direct labor (4 hours @ $14 per hour) 56 During June the company incurred the following actual costs to produce 9,000 units. Direct materials (137,700 pounds @ $4.80 per pound) Direct labor (40,000 hours @ $14.15 per hour) $ 660,960 566,000 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
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Chapter1: Financial Statements And Business Decisions
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Camila Company has set the following standard cost per unit for direct materials and direct labor.
Direct materials (15 pounds @ $5 per pound)
Direct labor (4 hours @ $14 per hour)
During June the company incurred the following actual costs to produce 9,000 units.
Direct materials (137,700 pounds @ $4.80 per pound)
Direct labor (40,000 hours @ $14.15 per hour)
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.
Required 1
Complete this question by entering your answers in the tabs below.
Required 2
Actual Cost
Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting favorable, unfavorable,
vari nce. Round "Rate per hour" answers to 2 decimal places.)
$
$75
56
0
$
$ 660,960
566,000
0
0
< Required 1
$
0
Required 2 >
Standard Cost
Transcribed Image Text:Camila Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (15 pounds @ $5 per pound) Direct labor (4 hours @ $14 per hour) During June the company incurred the following actual costs to produce 9,000 units. Direct materials (137,700 pounds @ $4.80 per pound) Direct labor (40,000 hours @ $14.15 per hour) 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. Required 1 Complete this question by entering your answers in the tabs below. Required 2 Actual Cost Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting favorable, unfavorable, vari nce. Round "Rate per hour" answers to 2 decimal places.) $ $75 56 0 $ $ 660,960 566,000 0 0 < Required 1 $ 0 Required 2 > Standard Cost
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