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 (2 hours @ $14 per hour) During May the company incurred the following actual costs to produce 8,500 units. Direct materials (121, 300 pounds @ $3.80 per pound) Direct labor (21,400 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. Complete this question by entering your answers in the tabs below. Required 2 Required 1 Compute the direct materials price and quantity variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Actual Cost $ $ 56 28 0 $ 0 0 $ 460,940 301,740 < Required 1 $ 0 Required 2 > Standard Cost

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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 (2 hours @ $14 per hour)
During May the company incurred the following actual costs to produce 8.500 units.
Direct materials (121,300 pounds @ $3.80 per pound)
Direct labor (21,400 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.
Complete this question by entering your answers in the tabs below.
Required 2
Required 1
Compute the direct materials price and quantity variances.
Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.
Actual Cost
$
$ 56
28
0
$
0
0
$ 460,940
301,740
< Required 1
$
0
Required 2 >
Standard Cost
Transcribed Image Text: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 (2 hours @ $14 per hour) During May the company incurred the following actual costs to produce 8.500 units. Direct materials (121,300 pounds @ $3.80 per pound) Direct labor (21,400 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. Complete this question by entering your answers in the tabs below. Required 2 Required 1 Compute the direct materials price and quantity variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Actual Cost $ $ 56 28 0 $ 0 0 $ 460,940 301,740 < Required 1 $ 0 Required 2 > Standard Cost
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