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Exercise 21-11 (Algo) Direct materials and direct labor variances LO P3 Lucia Company has set the following standard cost per unit for direct materials and direct labor. $ 42 Direct materials (14 pounds @ $3 per pound) Direct labor (3 hours @ $14 per hour) 42 During May the company incurred the following actual costs to produce 8,700 units. Direct materials (125,000 pounds @ $2.80 per pound) Direct labor (30,700 hours @ $14.10 per hour) AR Actual Rate SR Standard Rate = $ 350,000 432,870

Exercise 21-11 (Algo) Direct materials and direct labor variances LO P3 Lucia Company has set the following standard cost per unit for direct materials and direct labor. $ 42 Direct materials (14 pounds @ $3 per pound) Direct labor (3 hours @ $14 per hour) 42 During May the company incurred the following actual costs to produce 8,700 units. Direct materials (125,000 pounds @ $2.80 per pound) Direct labor (30,700 hours @ $14.10 per hour) AR Actual Rate SR Standard Rate = $ 350,000 432,870

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 3PA: Direct materials, direct labor, and factory overhead cost variance analysis Mackinaw Inc. processes...
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Exercise 21-11 (Algo) Direct materials and direct labor variances LO P3 Lucia Company has set the following standard cost per unit for direct materials and direct labor. $ 42 Direct materials (14 pounds @ $3 per pound) Direct labor (3 hours @ $14 per hour) 42 During May the company incurred the following actual costs to produce 8,700 units. Direct materials (125,000 pounds @ $2.80 per pound) Direct labor (30,700 hours @ $14.10 per hour) AR Actual Rate SR Standard Rate AQ Actual Quantity SQ Standard Quantity AP = Actual Price SP Standard Price (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance. $ 350,000 432,870 Complete this question by entering your answers in the tabs below. Required 1 Required 2
Transcribed Image Text:Exercise 21-11 (Algo) Direct materials and direct labor variances LO P3 Lucia Company has set the following standard cost per unit for direct materials and direct labor. $ 42 Direct materials (14 pounds @ $3 per pound) Direct labor (3 hours @ $14 per hour) 42 During May the company incurred the following actual costs to produce 8,700 units. Direct materials (125,000 pounds @ $2.80 per pound) Direct labor (30,700 hours @ $14.10 per hour) AR Actual Rate SR Standard Rate AQ Actual Quantity SQ Standard Quantity AP = Actual Price SP Standard Price (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance. $ 350,000 432,870 Complete this question by entering your answers in the tabs below. Required 1 Required 2
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