**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."

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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…

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

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