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 @ $15 per hour)] 60 During June the company incurred the following actual costs to produce 8,900 units. Direct materials (136,000 pounds @ $4.75 per pound) Direct labor (39,700 hours @ $15.15 per hour) $ 646,000 601,455 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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ISBN:9781259964947
Author:Libby
Publisher:Libby
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.
$75
Direct materials (15 pounds @ $5 per pound)
Direct labor (4 hours @ $15 per hour)]
60
During June the company incurred the following actual costs to produce 8,900 units.
Direct materials (136,000 pounds @ $4.75 per pound)
Direct labor (39,700 hours @ $15.15 per hour)
$ 646,000
601,455
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.
Transcribed Image Text: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 @ $15 per hour)] 60 During June the company incurred the following actual costs to produce 8,900 units. Direct materials (136,000 pounds @ $4.75 per pound) Direct labor (39,700 hours @ $15.15 per hour) $ 646,000 601,455 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.
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