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 materials:   a.Price $4000 F; Efficiency $6000 F b.Price $10000 U; Efficiency $4000 F c.Price $5000 F; Efficiency $5000 F d.Price $4000 F; Efficiency $10000 U

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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 materials:

 

a.Price $4000 F; Efficiency $6000 F
b.Price $10000 U; Efficiency $4000 F
c.Price $5000 F; Efficiency $5000 F
d.Price $4000 F; Efficiency $10000 U
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