The following information relates to production activities of Mercer Manufacturing for the year. Actual direct materials used Actual direct labor used Actual units produced Standard quantity and price per unit for direct materials Standard quantity and rate per unit for direct labor 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 and efficiency variances. 17,600 pounds at $4.85 per pound 18,235 hours at $35 per hour 33,200 0.50 pound at $4.80 per pound 0.50 hour at $36 per hour

The following information relates to production activities of Mercer Manufacturing for the year. Actual direct materials used Actual direct labor used Actual units produced Standard quantity and price per unit for direct materials Standard quantity and rate per unit for direct labor 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 and efficiency variances. 17,600 pounds at $4.85 per pound 18,235 hours at $35 per hour 33,200 0.50 pound at $4.80 per pound 0.50 hour at $36 per hour

Name: Required 1 Required 2Compute the direct materials price and quantity
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Description: Required 1 Required 2Compute the direct materials price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or novariance.)Actual Cost$ 0$00 The following informat

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

Required 1 Required 2
Compute the direct materials price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no
variance.)
Actual Cost
$ 0
$
0
0
< Required 1
$
0
Standard Cost
Required 2 >

The following information relates to production activities of Mercer Manufacturing for the year.
Actual direct materials used
Actual direct labor used
Actual units produced
Standard quantity and price per unit for direct materials
Standard quantity and rate per unit for direct labor
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 and efficiency variances.
17,600 pounds at $4.85 per pound
18,235 hours at $35 per hour
33,200
0.50 pound at $4.80 per pound
0.50 hour at $36 per hour

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