21-3

A manufactured product has the following information for June.

Compute the direct materials price variance and the direct materials quantity variance. Indicate whether each variance is favorable or unfavorable.

AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price

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

AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate

Actual 53,300 1bs. @ $8.20 per lb. 17,200 hrs. @ $17.40 per hr Standard Direct materials Direct labor Overhead Units manufactured (6 lbs. @ $8 per lb.) (2 hrs. @ $17 per hr.) (2 hrs. @ $12 per hr.) $216,400 8,800 Actual Cost Standard Cost Actual Cost Standard Cost 0 0