ual direct materials used ual direct labor used ual units produced ndard quantity and price per unit for direct materials ndard quantity and rate per unit for direct labor Actual Rate Standard Rate Actual Quantity Standard Quantity 16,500 pounds at $4.30 per pound 17,135 hours at $24 per hour 31,000 0.50 pound at $4.25 per pound 0.50 hour at $25 per hour
ual direct materials used ual direct labor used ual units produced ndard quantity and price per unit for direct materials ndard quantity and rate per unit for direct labor Actual Rate Standard Rate Actual Quantity Standard Quantity 16,500 pounds at $4.30 per pound 17,135 hours at $24 per hour 31,000 0.50 pound at $4.25 per pound 0.50 hour at $25 per hour
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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.
16,500 pounds at $4.30 per pound
17,135 hours at $24 per hour
31,000
0.50 pound at $4.25 per pound
0.50 hour at $25 per hour
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.
Actual Cost
Standard Cost
< Required 1
Required 2 >
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