Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Amber Company produces iron table and chair sets. During October, Ambers costs were as follows: Actual purchase price $ 3.30 per lb. Actual direct labor

Amber Company produces iron table and chair sets. During October, Ambers costs were as follows:

Actual purchase price $ 3.30 per lb.
Actual direct labor rate $ 8.50 per hour
Standard purchase price $ 3.10 per lb.
Standard quantity for sets produced 1,070,000 lbs.
Standard direct labor hours allowed 21,000
Actual quantity purchased in October 1,415,000 lbs.
Actual direct labor hours 20,000
Actual quantity used in October 1,100,000 lbs.
Direct labor rate variance $6,600 F

Required:

1. Calculate the total cost of purchases for October.

2. Compute the direct materials price variance based on quantity purchased.

3. Calculate the direct materials quantity variance based on quantity used.

4. Compute the standard direct labor rate for October.

5. Compute the direct labor efficiency variance for October.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Communication Audit In Globally Integrated R And D Project Teams

Authors: Justyna Alnajjar

1st Edition

3631666608, 978-3631666609

More Books

Students also viewed these Accounting questions

Question

Dravids the II JPAC name for each of the following ethers

Answered: 1 week ago

Question

=+3. What are some criticisms of the DSM?

Answered: 1 week ago

Question

What aspects would it be impossible to capture?

Answered: 1 week ago

Question

Enhance your words with effective presentation aids

Answered: 1 week ago