Homework Help is Here – Start Your Trial Now!
Business
Accounting
Lucia Company has set the following standard cost per unit for direct materials and direct labor. $ 45 Direct materials (15 pounds @ $3 per pound) Direct labor (3 hours $16 per hour) 48 During May the company incurred the following actual costs to produce 8,500 units. Direct materials (131,400 pounds $2.80 per pound) Direct labor (29,200 hours $16.10 per hour) AR = Actual Rate SR Standard Rate = AQ Actual Quantity SQ Standard Quantity AP Actual Price SP Standard Price $367,920 470, 120 (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance.

Lucia Company has set the following standard cost per unit for direct materials and direct labor. $ 45 Direct materials (15 pounds @ $3 per pound) Direct labor (3 hours $16 per hour) 48 During May the company incurred the following actual costs to produce 8,500 units. Direct materials (131,400 pounds $2.80 per pound) Direct labor (29,200 hours $16.10 per hour) AR = Actual Rate SR Standard Rate = AQ Actual Quantity SQ Standard Quantity AP Actual Price SP Standard Price $367,920 470, 120 (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Topic Video
Question

Please do not give solution in image format thanku 

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. Direct materials (15 pounds @ $3 per pound) Direct labor (3 hours @ $16 per hour) During May the company incurred the following actual costs to produce 8,500 units. Direct materials (131,400 pounds @ $2.80 per pound) Direct labor (29,200 hours $16.10 per hour) AR Actual Rate SR Standard Rate AQ Actual Quantity SQ Standard Quantity AP Actual Price SP Standard Price: $ 45 48 $367,920 470, 120 (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance.
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. Direct materials (15 pounds @ $3 per pound) Direct labor (3 hours @ $16 per hour) During May the company incurred the following actual costs to produce 8,500 units. Direct materials (131,400 pounds @ $2.80 per pound) Direct labor (29,200 hours $16.10 per hour) AR Actual Rate SR Standard Rate AQ Actual Quantity SQ Standard Quantity AP Actual Price SP Standard Price: $ 45 48 $367,920 470, 120 (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance.
Required 1 Required 2 Compute the direct materials price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no v Standard Cost Actual Cost Required 1 Required 2 $ 0 $ $ 0 $ 0 0 o 0 (Required t Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting favorable, un variance. Round "Rate per hour" answers to 2 decimal places.) Actual Cost + $ < Required 1 0 $ Required 2 > 0 Required 2 > Standard Cost
Transcribed Image Text:Required 1 Required 2 Compute the direct materials price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no v Standard Cost Actual Cost Required 1 Required 2 $ 0 $ $ 0 $ 0 0 o 0 (Required t Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting favorable, un variance. Round "Rate per hour" answers to 2 decimal places.) Actual Cost + $ < Required 1 0 $ Required 2 > 0 Required 2 > Standard Cost
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Performance measurements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS