At the beginning of July, Commercial Printers Company budgeted 14,000 books to be printed in July at

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At the beginning of July, Commercial Printers Company budgeted 14,000 books to be printed in July at standard direct materials and direct labor costs as follows:

Direct materials .. $28,000

Direct labor ..... 24,500

Total ........ $52,500


The standard materials price is $0.80 per pound. The standard direct labor rate is $14 per hour. At the end of July, the actual direct materials and direct labor costs were as follows:

Actual direct materials ... $31,200

Actual direct labor ..... 28,400

Total ........... $59,600


There were no direct materials price or direct labor rate variances for July. In addition, assume no changes in the direct materials inventory balances in July. Commercial Printers Company actually produced 15,800 units during July.


Determine the direct materials quantity and direct labor time variances.


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Accounting

ISBN: 978-0324401844

22nd Edition

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

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