Question
A manufactured product has the following information for June. Standard Actual Direct materials (6 lbs. @ $7 per lb.) 46,700 lbs. @ $7.10 per lb.
A manufactured product has the following information for June.
| Standard | Actual | |||
| Direct materials | (6 lbs. @ $7 per lb.) | 46,700 | lbs. @ $7.10 per lb. | |
| Direct labor | (2 hrs. @ $16 per hr.) | 15,100 | hrs. @ $16.60 per hr. | |
| Overhead | (2 hrs. @ $13 per hr.) | $ | 207,100 | |
| Units manufactured | 7,700 | |||
AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price
Compute the direct materials price variance and the direct materials quantity variance. Indicate whether each variance is favorable or unfavorable.
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Electronic Working Papers For Needles Powers Crossons Financial And Managerial Accounting 9th And Crosson Needles Managerial Accounting
Authors: Susan V. Crosson, Belverd E. Needles
9th Edition
0538791918, 978-0538791915
