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Amber Company produces iron table and chair sets. During October, Ambers costs were as follows: Actual purchase price $ 2.50 per pound Actual direct labor
Amber Company produces iron table and chair sets. During October, Ambers costs were as follows:
Actual purchase price | $ 2.50 | per pound |
---|---|---|
Actual direct labor rate | $ 7.70 | per hour |
Standard purchase price | $ 2.30 | per pound |
Standard quantity for sets produced | 990,000 | pounds |
Standard direct labor hours allowed | 14,000 | |
Actual quantity purchased in October | 1,145,000 | pounds |
Actual direct labor hours | 12,000 | |
Actual quantity used in October | 1,020,000 | pounds |
Direct labor rate variance | $5,760 | F |
Required:
- Calculate the total cost of purchases for October.
- Compute the direct materials price variance based on the actual quantity purchased.
- Calculate the direct materials quantity variance based on the actual quantity used.
- Compute the standard direct labor rate for October.
- Compute the direct labor efficiency variance for October.
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