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Camila Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (14 pounds @ $4 per pound) Direct labor (4 hours $16 per hour) During June the company incurred the following actual costs to produce 8,800 units. Direct materials (125,300 pounds @ $3.75 per pound) Direct labor (40,100 hours @ $16.15 per hour) AR Actual Rate SR Standard Rate AQ Actual Quantity SQ Standard Quantity AP Actual Price SP Standard Price $ 56 64 $ 469,875 647,615 (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 (14 pounds @ $4 per pound) Direct labor (4 hours $16 per hour) During June the company incurred the following actual costs to produce 8,800 units. Direct materials (125,300 pounds @ $3.75 per pound) Direct labor (40,100 hours @ $16.15 per hour) AR Actual Rate SR Standard Rate AQ Actual Quantity SQ Standard Quantity AP Actual Price SP Standard Price $ 56 64 $ 469,875 647,615 (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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Camila Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (14 pounds @ $4 per pound) Direct labor (4 hours @ $16 per hour) During June the company incurred the following actual costs to produce 8,800 units. Direct materials (125,300 pounds @ $3.75 per pound) Direct labor (40,100 hours @ $16.15 per hour) AR Actual Rate SR Standard Rate AQ Actual Quantity SQ Standard Quantity AP Actual Price SP Standard Price $ 56 64 $ 469,875 647,615 (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance.
Transcribed Image Text:Camila Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (14 pounds @ $4 per pound) Direct labor (4 hours @ $16 per hour) During June the company incurred the following actual costs to produce 8,800 units. Direct materials (125,300 pounds @ $3.75 per pound) Direct labor (40,100 hours @ $16.15 per hour) AR Actual Rate SR Standard Rate AQ Actual Quantity SQ Standard Quantity AP Actual Price SP Standard Price $ 56 64 $ 469,875 647,615 (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance.
Required 1 Required 2 Compute the direct materials price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Standard Cost AQ 125,300 Actual Cost X X $ 469,875 Price variance Quantity variance Total direct materials variance AP $ 3.75 Required 2 Actual Cost $ $ 0 0 $ $ 7 AQ of 0 0 X X Required 1 Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to 2 decimal places.) <Required 1 SP < Required 1 S $ 0 0 Required 2 > Standard Cost
Transcribed Image Text:Required 1 Required 2 Compute the direct materials price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Standard Cost AQ 125,300 Actual Cost X X $ 469,875 Price variance Quantity variance Total direct materials variance AP $ 3.75 Required 2 Actual Cost $ $ 0 0 $ $ 7 AQ of 0 0 X X Required 1 Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to 2 decimal places.) <Required 1 SP < Required 1 S $ 0 0 Required 2 > Standard Cost
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