**Exercise 23-12 (Algo) Direct materials and direct labor variances LO P3**Camila Company has set the following standard cost per unit for direct materials and direct labor.- Direct materials (15 pounds @ $5 per pound): $75- Direct labor (4 hours @ $14 per hour): $56During June, the company incurred the following actual costs to produce 8,000 units:- Direct materials (122,600 pounds @ $4.70 per pound): $576,220- Direct labor (35,400 hours @ $14.10 per hour): $499,140**Key Notations:**- AR = Actual Rate- SR = Standard Rate- AQ = Actual Quantity- SQ = Standard Quantity- AP = Actual Price- SP = Standard Price**Tasks:**1. Compute the direct materials price and quantity variances.2. Compute the direct labor rate variance and the direct labor efficiency variance.**Instructions:**Complete this question by entering your answers in the tabs below.**Required:**- **1:** Compute the direct materials price and quantity variances. - **Note:** Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.**Table Explanation:**The table provided in the exercise is divided into columns for "Actual Cost" and "Standard Cost." It contains spaces to calculate and compare the actual and standard costs, allowing you to determine variances. These are highlighted and left blank for users to fill in with the calculated variances.- The objective is to fill in the table, computing the variances effectively and indicating if they are favorable, unfavorable, or neutral based on the comparisons between actual and standard costs.The interaction structure allows you to toggle between different requirements, facilitating focused computations on specific variance components. **Exercise 23-12 (Algo) Direct materials and direct labor variances LO P3**Camila Company has set the following standard cost per unit for direct materials and direct labor.- Direct materials (15 pounds @ $5 per pound) = $75- Direct labor (4 hours @ $14 per hour) = $56During June, the company incurred the following actual costs to produce 8,000 units.- Direct materials (122,600 pounds @ $4.70 per pound) = $576,220- Direct labor (35,400 hours @ $14.10 per hour) = $499,140**Abbreviations:**- AR = Actual Rate- SR = Standard Rate- AQ = Actual Quantity- SQ = Standard Quantity- AP = Actual Price- SP = Standard Price**Tasks:**1. Compute the direct materials price and quantity variances.2. Compute the direct labor rate variance and the direct labor efficiency variance.Complete this question by entering your answers in the tabs below.**Instructions:**Compute the direct labor rate variance and the direct labor efficiency variance.*Note:* Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to 2 decimal places.**Table:**- Columns include sections for entering both Actual Cost and Standard Cost data.- Spaces are provided to fill out variances for material and labor costs.- The table includes placeholders for calculated values to indicate favorable, unfavorable, or no variance outcomes.**Navigation:**- Use navigation buttons to move between parts of the exercise: "< Prev" and "Next."- Required steps are divided into "Required 1" and "Required 2."

Name: **Exercise 23-12 (Algo) Direct materials and direct labor variances L
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: **Exercise 23-12 (Algo) Direct materials and direct labor variances LO P3**Camila Company has set the following standard cost per unit for direct materials and direct labor.- Direct materials (15 pounds @ $5 per pound): $75- Direct labor (4 hours @

Direct material cost variance is a situation when there is difference between standard cost and actual cost of materials. It can be due to difference in price and quantity used. Direct labor variance Total is the sum of direct labor rate variance and direct labor efficiency variance. Direct labor rate variance is based on standard rate and actual rate of labor. Direct labor efficiency variance is based on actual hours and standard hours.Total Standard Quantity (8,000 units * 15 pounds) = 120,000 pounds Actual CostStandard CostAQxAPAQxSPSQxSP 122,600x$4.70 122,600x$5.00 120,000x$5.00$576,220$613,000$600,000$36,780$13,000Direct Materials Price Variance$36,780FavorableDirect Materials quantity Variance$13,000UnfavorableTotal Direct Materials Variance$23,780FavorableComputation of direct Labor rate and direct labor efficiency variances: Total Standard Hours (8,000 units * 4 hours) = 32,000 Hours Actual CostStandard CostAHxARAHxSRSHxSR 35,400x$14.10 35,400x$14.00 32,000x$14.00$499,140$495,600$448,000$3,540$47,600Direct labor rate Variance$3,540UnfavorableDirect labor efficiency Variance$47,600UnfavorableTotal Direct labor Variance$51,140Unfavorable

Business

Accounting

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 8,000 units. Direct materials (122,600 pounds @ $4.70 per pound) Direct labor (35,400 hours @ $14.10 per hour) AR Actual Rate SR Standard Rate AQ = Actual Quantity SQ = Standard Quantity AP= Actual Price SP= Standard Price $75 56 $ 576,220 499,140 (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 (15 pounds @ $5 per pound) Direct labor (4 hours @ $14 per hour) During June the company incurred the following actual costs to produce 8,000 units. Direct materials (122,600 pounds @ $4.70 per pound) Direct labor (35,400 hours @ $14.10 per hour) AR Actual Rate SR Standard Rate AQ = Actual Quantity SQ = Standard Quantity AP= Actual Price SP= Standard Price $75 56 $ 576,220 499,140 (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Integrity Company uses standard costing for each specialized product. The following information is available:Standards:Material- 3.0 feet per unit @ P42.00 per footLabor- 2.5 hours per unit @ P75.00 per hourActual:Production- 2,750 units produced during the monthMaterial- 8,700 feet used; 9,000 feet purchased @ P45.00 per footLabor- 7,000 direct labor hours @ P79.00 per hourHow much is the materials usage variance?
5
The materials price variance for January is: Multiple Cholce $280 U $420 F $420 U $280 F
Saktanmokobaybeh Company uses standard costing for direct materials and direct labor. The following monthly cost functions were developed for manufacturing overhead items: Budgeted Overhead Item Cost Function: Indirect materials 1.00 per DLH Indirect labor 1.25 per DLH Utilities 0.50 per DLH Insurance 50,000 Depreciation 400,000 The cost functions were determined using observations from 20,000 to 30,000 direct labor hours. The company expects to operate at 25,000 direct labor hours per month. The theoretical capacity per month of the company is 30,000 units. Each unit requires 2 direct labor hours. The Company applies overhead using direct labor hours. Actual data for this month are as follows: Variable overhead costs P 87,000 Fixed overhead costs 423,000 Direct labor hours 26,000 Question 1: The entry pertaining to the volume variance if the standard direct labor hours allowed for this month was 24,000 will include a debit/(credit) to manufacturing overehead amounting to? (USE…
Rahul
Handerson Corporation makes a product with the following standard costs: Standard Quantity Standard Price or or Hours 8.5 kilos Rate Direct materials $46.00 r kilo $ 20.00 per hour $ 6.00 per hour Direct labor 0.4 hours Variable overhead 0.4 hours The company reported the following results concerning this product in August. Actual output 3,200 units 29,030 kilos 31,600 kilos 1,160 hours $ 195,920 $ 22,736 $ 7,540 Raw materials used in production Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is cor purchased. The labor efficiency variance for August is:
3
Saktanmokobaybeh Company uses standard costing for direct materials and direct labor. The following monthly cost functions were developed for manufacturing overhead items: Budgeted Overhead Item Cost Function: Indirect materials P 1.00 per DLH Indirect labor 1.25 per DLH Utilities 0.50 per DLH Insurance 50,000 Depreciation 400,000 The cost functions were determined using observations from 20,000 to 30,000 direct labor hours. The company expects to operate at 25,000 direct labor hours per month. The theoretical capacity per month of the company is 30,000 units. Each unit requires 2 direct labor hours. The Company applies overhead using direct labor hours. Actual data for this month are as follows: Variable overhead costs P 87,000 Fixed overhead costs 423,000 Direct labor hours 26,000 P
Subject - Acounting
Sedona Company set the following standard costs for one unit of its product for this year. Direct material (15 pounds $3.40 per pound) Direct labor (10 hours e S9.70 per DLH) Veriable overhead (10 hours $4.90 per DLH) Fied overhead (10 hours $2. 00 per DLH) Standard cost per unit $ 51.00 97.00 49.00 20.00 $ 217.00 The $6.90 ($4.90 - $2.00) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of 41,300 units, which is 70% of the factory's capacity of 59,000 units per month. The following monthly flexible budget information Is avallable. Operat ing Levels (K of capacity) 65% 30, 350 383,500 Flexible Budget Budgeted production (units) Rudgeted direct labor (standard hours) Budgeted overhead Varlable overhead Fised overhead Total avertead 41, 300 413,000 75% 44, 250 442, 500 $1,879,150 826,000 $ 2,023, 700 826, 000 $ 2,849, 700 $2,168, 250 126, e00 $ 2,994, 250 $ 2,705, 150 During the current month, the company operated at 65% of capacity, direct labor of…
Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (15 pounds @ $3 per pound) $45 Direct labor (3 hours @ $14 per hour) 42 During May the company incurred the following actual costs to produce 8,600 units. Direct materials (131,700 pounds @ $2.80 per pound) $368,760 Direct labor (29,200 hours @ $14.10 per hour) 411,720 AR = Actual RateSR = Standard RateAQ = Actual QuantitySQ = Standard QuantityAP = Actual PriceSP = Standard Price(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 @ $5 per pound) $ 70 Direct labor (2 hours @ $14 per hour) 28 During June the company incurred the following actual costs to produce 8,800 units. Direct materials (125,300 pounds @ $4.75 per pound) $ 595,175 Direct labor (22,300 hours @ $14.15 per hour) 315,545 AR = Actual RateSR = Standard RateAQ = Actual QuantitySQ = Standard QuantityAP = Actual PriceSP = Standard Price(1) Compute the direct materials price and quantity variances.(2) Compute the direct labor rate variance and the direct labor efficiency variance.