E9-15 (Algo) Determining Actual Costs, Standard Costs, and Variances [LO 9-3, 9-4] Amber Company produces iron table and chair sets. During October, Amber's costs were as follows: Actual purchase price. Actual direct labor rate Standard purchase price. Standard quantity for sets produced Standard direct labor hours allowed Actual quantity purchased in October Actual direct labor hours Actual quantity used in October Direct labor rate variance Required: 1. Calculate the total cost of purchases for October 2. Compute the direct materials price variance based on the actual quantity purchased 3. Calculate the direct materials quantity variance based on the actual quantity used 4. Compute the standard direct labor rate for October 5. Compute the direct labor efficiency variance for October Reg 1 Complete this question by entering your answers in the tabs below. Reg 2 and 3 Reg 4 $ 2.40 per pound $ 7.60 per hour $ 2.20 per pound 980,000 pounds 12,000 1,125,000 pounds 11,000 1,010,000 pounds Rea S $5,610 P < Req 4 Compute the direct labor efficiency variance for October. Note: Round your intermediate calculation to 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Direct Labor Efficiency Variance
E9-15 (Algo) Determining Actual Costs, Standard Costs, and Variances [LO 9-3, 9-4] Amber Company produces iron table and chair sets. During October, Amber's costs were as follows: Actual purchase price. Actual direct labor rate Standard purchase price. Standard quantity for sets produced Standard direct labor hours allowed Actual quantity purchased in October Actual direct labor hours Actual quantity used in October Direct labor rate variance Required: 1. Calculate the total cost of purchases for October 2. Compute the direct materials price variance based on the actual quantity purchased 3. Calculate the direct materials quantity variance based on the actual quantity used 4. Compute the standard direct labor rate for October 5. Compute the direct labor efficiency variance for October Reg 1 Complete this question by entering your answers in the tabs below. Reg 2 and 3 Reg 4 $ 2.40 per pound $ 7.60 per hour $ 2.20 per pound 980,000 pounds 12,000 1,125,000 pounds 11,000 1,010,000 pounds Rea S $5,610 P < Req 4 Compute the direct labor efficiency variance for October. Note: Round your intermediate calculation to 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Direct Labor Efficiency Variance
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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![E9-15 (Algo) Determining Actual Costs, Standard Costs, and Variances [LO 9-3, 9-4]
Amber Company produces iron table and chair sets. During October, Amber's costs were as follows:
Actual purchase price
Actual direct labor rate
Standard purchase price
$2.40 per pound
$ 7.60 per hour
$ 2.20 per pound
980,000 pounds
12,000
Standard quantity for sets produced
Standard direct labor hours allowed t
Actual quantity purchased in October
Actual direct labor hours
Actual quantity used in October
Direct labor rate variance
Required:
1. Calculate the total cost of purchases for October.
2. Compute the direct materials price variance based on the actual quantity purchased
3. Calculate the direct materials quantity variance based on the actual quantity used.
4. Compute the standard direct labor rate for October.
5. Compute the direct labor efficiency variance for October
Complete this question by entering your answers in the tabs below.
Reg 1
Reg 2 and 3
Reg 4
1,125,000 pounds
11,000
1,010,000 pounds
$5,610 P
Reg S
Compute the direct labor efficiency variance for October.
Note: Round your intermediate calculation to 2 decimal places. Indicate the effect of each variance by selecting "F" for
favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).
Direct Labor Efficiency Variance
< Req 4
Reg53](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F58bab3ae-ebdd-4a18-9877-13dafc952f81%2Fc9cf93f9-198c-4fdf-bb10-ea2533d081e1%2F5o9dgwn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:E9-15 (Algo) Determining Actual Costs, Standard Costs, and Variances [LO 9-3, 9-4]
Amber Company produces iron table and chair sets. During October, Amber's costs were as follows:
Actual purchase price
Actual direct labor rate
Standard purchase price
$2.40 per pound
$ 7.60 per hour
$ 2.20 per pound
980,000 pounds
12,000
Standard quantity for sets produced
Standard direct labor hours allowed t
Actual quantity purchased in October
Actual direct labor hours
Actual quantity used in October
Direct labor rate variance
Required:
1. Calculate the total cost of purchases for October.
2. Compute the direct materials price variance based on the actual quantity purchased
3. Calculate the direct materials quantity variance based on the actual quantity used.
4. Compute the standard direct labor rate for October.
5. Compute the direct labor efficiency variance for October
Complete this question by entering your answers in the tabs below.
Reg 1
Reg 2 and 3
Reg 4
1,125,000 pounds
11,000
1,010,000 pounds
$5,610 P
Reg S
Compute the direct labor efficiency variance for October.
Note: Round your intermediate calculation to 2 decimal places. Indicate the effect of each variance by selecting "F" for
favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).
Direct Labor Efficiency Variance
< Req 4
Reg53
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