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A manufactured product has the following information for June. Standard Actual Direct materials (5 lbs. @ $8 per lb.) 42,400 lbs. @ $8.10 per lb.
A manufactured product has the following information for June.
| Standard | Actual | |||
| Direct materials | (5 lbs. @ $8 per lb.) | 42,400 | lbs. @ $8.10 per lb. | |
| Direct labor | (2 hrs. @ $17 per hr.) | 16,600 | hrs. @ $17.50 per hr. | |
| Overhead | (2 hrs. @ $12 per hr.) | $ | 207,400 | |
| Units manufactured | 8,400 | |||
Exercise 23-9 Direct materials variances LO P2
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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