Lucia Company has set the following standard cost per unit for direct materials and direct labor.Direct materials (14 pounds @ $4 per pound)Direct labor (4 hours @ $14 per hour)$ 5656During May the company incurred the following actual costs to produce 8,600 units.Direct materials (123,200 pounds @ $3.80 per pound)Direct labor (38,700 hours @ $14.10 per hour)AR Actual RateSRStandard RateAQ = Actual QuantitySQ = Standard QuantityAP = Actual PriceSPStandard PriceAH = Actual HoursSHStandard Hours$ 468,160545,670(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 1Required 2Compute the direct materials price and quantity variances.Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.Actual CostStandard Cost< Prev8 of 8Next

The variance analysis refers to the comparison of the standard sets with the actual results for the…

Answered: Lucia Company has set the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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4
Amber Company produces iron table and chair sets. During October, Amber's costs were as follows: $ 3.00 per lb. $8.20 per hour $ 2.80 per lb. 1,040,000 lbs. 21,000 1,295,000 lbs. 17,000 1,070,000 lbs. $6,120 F 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 quantity purchased. 3. Calculate the direct materials quantity variance based on quantity used. 4. Compute the standard direct labor rate for October. 5. Compute the direct labor efficiency variance for October.
Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (16 pounds @ $3 per pound) $ 48 Direct labor (3 hours @ $15 per hour) 45 During May the company incurred the following actual costs to produce 8,100 units. Direct materials (133,600 pounds @ $2.80 per pound) $ 374,080 Direct labor (29,200 hours @ $15.10 per hour) 440,920 AR = Actual RateSR = Standard RateAQ = 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.
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.
A company uses the following standard costs to produce a single unit of output. 6 pounds at $0.60 per pound 0.5 hour at $9.00 per hour = 0.5 hour at $4.30 per hour = Direct materials Direct labor Manufacturing overhead During the latest month, the company purchased and used 57,000 pounds of direct materials at a price of $0.70 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $42,369 based on 4,870 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $18,500 and fixed manufacturing overhead incurred was $18,000. Based on this information, the direct labor efficiency variance for the month was: Multiple Choice $2,631 favorable $1,461 favorable $1,170 unfavorable $1,170 favorable $ 3.60 $ 4.50 $ 2.15 $1,461 unfavorable
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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.
The Homer Corporation produces two products, and reports the following production and cost information for the most recent accounting period. Product A Product B Number of units produced 20,000 units 4,000 units Direct labor @ $20 per direct labor hour (DLH) 0.50 DLH per unit 2.00 DLH per unit Direct materials cost $ 4 per unit $ 35 per unit Overhead costs: Total Cost ActivityDriver Product A Product B Machine setup $ 2,000.00 setups 6 setups 14 setups Quality inspections 31,000.00 inspections 80 inspections 120 inspections Total $ 33,000.00 Using activity-based costing to assign overhead costs, the activity rate for machine setups is:
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.
Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. Direct materials (10 lbs. @ $3 per lb.) $30 Direct labor (2 hrs. @ $12 per hr.) 24 During June the company incurred the following actual costs to produce 9,000 units. Direct materials (92,000 lbs. @ $2.95 per lb.) $ 271,400 Direct labor (18,800 hrs. @ $12.05 per hr.) 226,540 AH = Actual HoursSH = Standard HoursAR = Actual RateSR = Standard Rate AQ = Actual QuantitySQ = Standard QuantityAP = Actual PriceSP = Standard Price (1) Compute the direct materials price and quantity variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.)(2) Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.)
Sharp Company manufactures a product for which the following standards have been set: Standard Standard Quantity Standard Price or or Hours Rate Cost $15 3 feet hours $5 per foot ? per hour ? ? Direct materials Direct labor During March, the company purchased direct materials at a cost of $54,630, all of which were used in the production of 2,875 units of product. In addition, 4,700 direct labor-hours were worked on the product during the month. The cost of this labor time was $47,000. The following variances have been computed for the month: Materials quantity variance Labor spending variance Labor efficiency variance Required: 1. For direct materials: a. Compute the actual cost per foot of materials for March. b. Compute the price variance and the spending variance. 2. For direct labor: a. Compute the standard direct labor rate per hour. b. Compute the standard hours allowed for the month's production. c. Compute the standard hours allowed per unit of product. $ 2,400 U $ 3,300 U $…

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