Hutto Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. Direct materials (15 lbs. $4 per lb.) $60 Direct labor (3 hrs. @ $15 per hr.) $45 During May the company incurred the following actual costs to produce 9,000 units. Direct materials (138,000 lbs. $3.75 per lb.) $517,500 Direct labor (31,000 hrs. $15.10 per hr.) $468,100 A. Compute the direct materials price and quantity variances. B. Compute the direct labor rate variance and the direct labor efficiency variance.

Hutto Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. Direct materials (15 lbs. $4 per lb.) $60 Direct labor (3 hrs. @ $15 per hr.) $45 During May the company incurred the following actual costs to produce 9,000 units. Direct materials (138,000 lbs. $3.75 per lb.) $517,500 Direct labor (31,000 hrs. $15.10 per hr.) $468,100 A. Compute the direct materials price and quantity variances. B. Compute the direct labor rate variance and the direct labor efficiency variance.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...

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