Lucia Company has set the following standard cost per unit for direct materials and direct laborDirect materials (16 pounds @ $4 per pound)Direct labor (2 hours @ $16 per hour)During May the company incurred the following actual costs to produce 8,900 units.Direct materials (146,000 pounds @ $3.80 per pound)Direct labor (21,300 hours @ $16.10 per hour)AR Actual RateSR Standard Rate:AQ = Actual QuantitySQ Standard QuantityAP Actual PriceSP Standard Price.(1) Compute the direct materials price and quantity variances.(2) Compute the direct labor rate variance and the direct labor efficiency variance.$ 6432Complete this question by entering your answers in the tabs below.AQ$ 554,800342,930Required 1Required 2Compute the direct materials price and quantity variances.Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.Actual CostXAPStandard Cost

Name: Lucia Company has set the following standard cost per unit for direct
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Description: Lucia Company has set the following standard cost per unit for direct materials and direct laborDirect materials (16 pounds @ $4 per pound)Direct labor (2 hours @ $16 per hour)During May the company incurred the following actual costs to produce 8,9

Direct material price variance = Actual quantity × (Actual price - Standard price) Direct material…

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Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (16 pounds @ $4 per pound) Direct labor (2 hours @ $16 per hour) During May the company incurred the following actual costs to produce 8,900 units. Direct materials (146,000 pounds @ $3.80 per pound) Direct labor (21,300 hours @ $16.10 per hour) AR Actual Rate SR Standard Rate: AQ = Actual Quantity SQ Standard Quantity AP Actual Price SP Standard Price: $ 64 32 (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance. $ 554,800 342,930 Complete this question by entering your answers in the tabs below. AQ Required 1 Required 2 Compute the direct materials price and quantity variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Actual Cost AP Standard Cost

Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (16 pounds @ $4 per pound) Direct labor (2 hours @ $16 per hour) During May the company incurred the following actual costs to produce 8,900 units. Direct materials (146,000 pounds @ $3.80 per pound) Direct labor (21,300 hours @ $16.10 per hour) AR Actual Rate SR Standard Rate: AQ = Actual Quantity SQ Standard Quantity AP Actual Price SP Standard Price: $ 64 32 (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance. $ 554,800 342,930 Complete this question by entering your answers in the tabs below. AQ Required 1 Required 2 Compute the direct materials price and quantity variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Actual Cost AP Standard Cost

FINANCIAL ACCOUNTING

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Camila Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (15 pounds @ $4 per pound) Direct labor (3 hours @ $14 per hour) During June the company incurred the following actual costs to produce 8,700 units. Direct materials (133,500 pounds @ $3.70 per pound) $493,950 416,060 Direct labor (29,300 hours @ $14.20 per hour) AR = Actual Rate SR = Standard Rate AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price $60 42 (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance.
Assume the following information appears in the standard cost card for a company that makes only one product: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 5 pounds $ 11.00 per pound $ 55.00 Direct labor 2 hours $ 17.00 per hour $ 34.00 Variable manufacturing overhead 2 hours $ 3.00 per hour $ 6.00 During the most recent period, the following additional information was available: 20,000 pounds of material was purchased at a cost of $10.50 per pound. All of the material that was purchased was used to produce 3,900 units. 8,000 direct labor-hours were recorded at a total cost of $132,000. The actual variable overhead cost incurred during the period was $25,050. Assuming the company uses direct labor-hours to compute its predetermined overhead rate, what is the variable overhead rate variance? Multiple Choice $1,650 F $1,650 U $1,050 U $1,050 F
Question During December, Wards Company’s actual costs incurred in the production of 1,000 units were as follows:Direct labor: $34,500 ($5 per hour)Direct material: $16,000 ($2 per pound)The standards for one unit of Wards Company’s product are as follows:Direct labor: Quantity, 0.5 hour per unit Quantity, Rate, $4.5 per hour Price, Direct material: 0.75 pounds per unit, $1.5 per poundRequired:1. Compute the direct-material price and quantity variances. Indicate whether each variance is favorable or unfavorable. Show your calculations. 2. Compute the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable. Show your calculations.
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Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (14 pounds @ $3 per pound) Direct labor (2 hours @ $14 per hour) $ 42 28 During May the company incurred the following actual costs to produce 8.100 units. Direct materials (115,780 pounds @ $2.80 per pound) Direct labor (19,700 hours @ $14.10 per hour) $ 323,968 277,770 AR = Actual Rate SR = Standard Rate AQ = Actual Quantity SQ AP Standard Quantity Actual Price SP=Standard Price AH = Actual Hours SH Standard Hours (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct materials price and quantity variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.
Quicksand Company has set the following standards for one unit of product:Direct materialQuantity: 6.2 pounds per unitPrice per pound: $11 per poundDirect laborQuantity: 6 hours per unitRate per hour: $23 per hour Actual costs incurred in the production of 2,800 units were as follows:Direct material: $194,350 ($11.50 per pound)Direct labor: $393,750 ($22.50 per hour)All materials purchased were consumed during the period.Indicate whether direct-quantity variances are favorable or unfavorable.Indicate whether direct-labor rate is favorable or unfavorable. Indicate whether labor efficiency variances are favorable or unfavorable.
Doogan Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 2.0 grams $ 7.00 per gram Direct labor 0.5 hours $ 19.00 per hour Variable overhead 0.5 hours $ 5.00 per hour The company produced 4,700 units in January using 10,230 grams of direct material and 2,210 direct labor-hours. During the month, the company purchased 10,800 grams of the direct material at $7.20 per gram. The actual direct labor rate was $19.80 per hour and the actual variable overhead rate was $4.90 per hour. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for January is:
The Russell Company provides the following standard cost data per unit of product: Direct material (3 gallons @ $3 per gallon) $9.00 Direct labor (2 hours @ $12 per hour) 24.00 During the period, the company produced and sold 22.000 units incurring the following costs: Direct materials Direct labor The direct labor usage variance was 68,000 gallons @ $2.90 per gallon 44,500 hours @ $12.05 per hour
Antuan Company set the following standard costs per unit for its product. Direct materials (6 pounds @ $5 per pound) $ 30 Direct labor (2 hours @ $17 per hour) 34 Overhead (2 hours @ $18.50 per hour). 37 Standard cost per unit $ 101 The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level of 75% of the factory's capacity of 20,000 units per month. Following are the company's budgeted overhead costs per month at the 75% capacity level. Overhead Budget (75% Capacity) Variable overhead costs Indirect materials. $ 45,000 Indirect labor 180,000 Power 45,000 Maintenance 90,000 360,000 Total variable overhead costs Fixed overhead costs 24,000 Depreciation-Building Depreciation-Machinery 80,000 Taxes and insurance 12,000 Supervisory salaries. 79,000 Total fixed overhead costs 195,000 Total overhead costs $ 555,000 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (91,000 pounds @ $5.10 per…
Bulluck Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Quantity or Hours 3.5 grams 0.7 hours 0.7 hours The company reported the following results concerning this product in July. Actual output Raw materials used in production Actual direct labor-hours Purchases of raw materials Actual price of raw materials purchased Actual direct labor rate Actual variable overhead rate Standard Price or Rate $ 1.00 per gram $ 11.00 per hour $ 2.00 per hour The variable overhead rate variance for July is: 3,000 units 11,370 grams 1,910 hours 12,100 grams $ 1.20 per gram $11.40 per hour $ 2.10 per hour The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
The following standard costs per unit, of one product, have been taken from the records of Bahrain Company. Direct materials 5 kgs at $3 per kg Direct labor 2.5 hours at $10 per hour Actual data for last month: Units produced: 12,000 Direct materials used: 35,000 kgs Direct material price: $4 per kg Direct labor hours: 22,000 Direct labor rate per hour: $9 Direct materials purchased: 100,000 kgs Required: (n) Compute the price and efficiency variances for direct materials and direct labor. Direct material price variance to be calculated at the time of purchase. (6) Prepare the journal entries to record the price and efficiency variances for direct materials and direct labor. For the toolbar, press ALT+F10 (PC) or ALT+FN-F10 (Mac).