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Actual results: Direct labor 180 hours @ $12 per hour = $2,160 total paid Direct materials purchased 250 pounds @ $2.30 per pound = $575
Actual results:
Direct labor 180 hours @ $12 per hour = $2,160 total paid
Direct materials purchased 250 pounds @ $2.30 per pound = $575 total credit purchases
Direct materials used 125 pounds
Actual production 75 units
Standard/budgeted data:
Direct materials 3 pounds per unit @ $2.10 per pound = $6.30 per unit
Direct labor 2 hours per unit @ $11 per hour = $22 per unit
Practical capacity 100 units (static/master budget)
Type each letter (a through e) and show supporting work.
a. Calculate the direct materials purchase price variance. Indicate if favorable (F) or unfavorable (U).
b. Calculate the direct materials usage variance. Indicate if favorable (F) or unfavorable (U).
c. Calculate the direct labor rate variance. Indicate if favorable (F) or unfavorable (U).
d. Calculate the direct labor efficiency variance. Indicate if favorable (F) or unfavorable (U.)
e. Give the entries for direct materials and direct labor. Label each account in each entry with debit (dr) or credit (cr)
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