Question
Amber Company produces iron table and chair sets. During October, Ambers costs were as follows: Actual purchase price $ 1.90 per lb. Actual direct labor
Amber Company produces iron table and chair sets. During October, Ambers costs were as follows:
Actual purchase price | $ 1.90 | per lb. |
Actual direct labor rate | $ 7.10 | per hour |
Standard purchase price | $ 1.70 | per lb. |
Standard quantity for sets produced | 930,000 | lbs. |
Standard direct labor hours allowed | 15,000 | |
Actual quantity purchased in October | 1,075,000 | lbs. |
Actual direct labor hours | 8,000 | |
Actual quantity used in October | 960,000 | lbs. |
Direct labor rate variance | 5,100 | F |
Required: |
1. | Calculate the total cost of purchases for October. |
2. | Compute the direct materials price variance based on quantity purchased. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.) |
3. | Calculate the direct materials quantity variance based on quantity used. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.) |
4. | Compute the standard direct labor rate for October. (Round your answer to 2 decimal places.) |
5. | Compute the direct labor efficiency variance for October. (Round your intermediate instruction 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.) |
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