Consider the following data collected for Albo's Rentals:                                                    Direct Materials Direct Manufacturing Labor Cost incurred: Actual inputs x Actual prices                  $210,000          $95,000 Actual inputs x standard prices                214,000            88,000 Standard inputs allowed for actual output x standard prices              220,000            85,000 Required: Compute the price and efficiency variances for direct manufacturing labor: Question 11Answer a. Price $7000 U; Efficiency $3000 U b. Price $7000 U; Efficiency $3000 F c. Price $5000 U; Efficiency $5000 U d. Price $7000 F; Efficiency $3000 U

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management analysis
Section: Chapter Questions
Problem 4BE
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Consider the following data collected for Albo's Rentals:

                                                   Direct Materials Direct Manufacturing Labor

Cost incurred:

Actual inputs x Actual prices                  $210,000          $95,000

Actual inputs x standard prices                214,000            88,000

Standard inputs allowed for

actual output x standard prices              220,000            85,000

Required: Compute the price and efficiency variances for direct manufacturing labor:

Question 11Answer

a.
Price $7000 U; Efficiency $3000 U
b.
Price $7000 U; Efficiency $3000 F
c.
Price $5000 U; Efficiency $5000 U
d.
Price $7000 F; Efficiency $3000 U 
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