ABC Co. manufactures two products, Product 1 and Product 2. Both require Material 1 and Material 2. Plant information regarding standards follows.

Saiel 18 stay in Protected View. Ena B44 12 ABC Co. manufactures two products, Product 1 and Product 2. Both products require Material 1 and Material 2. 13 Plant information regarding standards follows. 14 15 Standard per Case of product 16 I Std price per unit Product 1 Product 2 17 Material 1 (lbs) 18 Material 2 (lbs) 7.40 1.55 15 19 Std labor quantity (hrs) 0.50 0.60 20 Std labor rates p/hr 16.00 $ 16.00 21 22 At the end of the year, ABC had the following actual results. There were no beginning or ending inventories for 23 either Materials 1 or 2. 24 25 Actuals per product 27 Product 2 Product 1 28 Actual Production (cases) 29 Actual Labor rate 30 Actual Hours used 5,100 15.50 $ 9,800 16.05 2,360 6,100 Material 2 1.40 Material 1 7.32 4 Actual price per Ib 189,000 5 Actual lbs purchased & used 141,000 Calculations 1. Compute the Direct Materials Price, Quantity, and total variances. Chapter 7 Problem 1. Compute the Direct Materials Price, Quantity, and total variances Total Material 2 Material 1 2 Direct Materials 3 Price Variance: 4 Actual Price enter data in blue cells 5 Standard Price 6 Variance enter formulas in yellow cells 7 x Actual Quantity 48 DM Price Variance 49 Favorable or Unfavorable? use the "IF" formula in these cells 50 51 52 Quantity Variance: 53 Actual Quantity 54 Standard Quantity 55 Variance 56 x Standard Price 57 DM Quantity Variance 58 Favorable or Unfavorable? 59 enter data in blue cells standard quantity at ACTUAL level of prodcution! enter formulas in yellow ceills use the "IF" formula in these cells 60 61 Total Direct Materials Variance 62 Favorable or Unfavorable? use the "IF" formula in this cell 63 64 2. Compute the Direct Labor Rate, Time, and total variances. 65 66 Direct Labor Product 1 Product 2 Total 67 Price Variance: 68 Actual Rate enter data in blue cells 69 Standard Rate 70 Variance enter formulas in yellow cells 71 x Actual Hours 72 DL Rate Variance 73 Favorable or Unfavorable? 74 Chapter 7 Problenm 75 76 Time Variance: 77 Actual Time enter data in blue cells 78 Standard Time 79 Variance enter formulas in yellow cells 80 x Standard Rate 81 DL Time Variance 82 Favorable or Unfavorable? 83 use the "IF" formula in these cell 84 85 Total Direct Labor Variance 86 Favorable or Unfavorable? use the "IF" formula in this cell 87 89 90 91