Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

19) Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. Direct materials (15 lbs.

19)

Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures.

Direct materials (15 lbs. @ $4 per lb.) $60
Direct labor (4 hrs. @ $15 per hr.) 60

During June the company incurred the following actual costs to produce 8,300 units.

Direct materials (127,200 lbs. @ $3.80 per lb.) $ 483,360
Direct labor (38,100 hrs. @ $15.10 per hr.). 575,310

(1) Compute the direct materials price and quantity variances.

(2) Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Accounting

Authors: Timothy Doupnik, Hector Perera

3rd Edition

978-0078110955, 0078110955

More Books

Students also viewed these Accounting questions