Ch 08 Ex 8-15Assignment

The following information relates to production activities of Mercer Manufacturing for the year.

Actual direct materials used	17,000 pounds at $4.55 per pound
Actual direct labor used	17,635 hours at $29 per hour
Actual units produced	32,000
Standard quantity and price per unit for direct materials	0.50 pound at $4.50 per pound
Standard quantity and rate per unit for direct labor	0.50 hour at $30 per hour

AR = Actual Rate

SR = Standard Rate

AQ = Actual Quantity

SQ = Standard Quantity

AP = Actual Price

SP = Standard Price

(1) Compute the direct materials price and quantity variances.

(2) Compute the direct labor rate and efficiency variances.

Complete this question by entering your answers in the tabs below. Compute the direct materials price and quantity variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Compute the direct labor rate and efficiency variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Compute the direct materials price and Note: Indicate the effect of each varian Compute the direct labor rate and effici Note: Indicate the effect of each varian