Exercise 08-11 Direct materials and direct labor varlances LO P3 Hutto Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. Direct materials (15 lbs. @ $4 per 1b.) Direct labor (2 hrs. $14 per hr.) $60 28 During May the company incurred the following actual costs to produce 8.200 units. Direct materials (126,000 lbs. @ $3.89 per lb.) Direct labor (20,68 hrs. $14.10 per hr.). $478,800 290,460 AH = Actual Hours SH = Standard Hours 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. (Indicate the effect of each varlence by selecting for favorable, unfavorable, and no varlance.) (2) Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each varlance by selecting for favorable, unfavorable, and no varlance. Round "Rete per hour" answers to 2 decimal places.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct materials price and quantity variances. Indicate whether each variance is favorable or unfavorable. Actual Cost Standard Cost AQ AP AQ sa SP SP S 4.00 126,000 x S 3.80 128.000 S 4.00 $ 478,800 S 504.000 $ 25,200 S 0 S Direct materials price variance Direct materials quantity variance Total direct materials variance 25,200 Unfavorable 0 Unfavorable Unfavorable Hutto Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. Direct materials (15 lbs. @ $4 per lb.) Direct labor (2 hrs. $14 per hr.) $60 28 During May the company incurred the following actual costs to produce 8.200 units. Direct materials (126,000 lbs. @$3.88 per 1b.) Direct labor (20,600 hrs. @ $14.10 per hr.). $478,800 299,460 AH = Actual Hours SH = Standard Hours 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. (Indicate the effect of each varlance by selecting for favorable, unfavorable, and no varlance.) (2) Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each varlance by selecting for favorable, unfavorable, and no varlance. Round "Rate per hour" answers to 2 decimal places.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable. Actual Cost Standard Cost AH AH SR SH AR $ 14.10 SR S 14.00 20.600 20,600 S 14.00 S 290,460 S 288,400 S 2.000 S 0 Direct labor rate variance Direct labor efficiency variance Total direct labor variano $ 2.060 (Unfavorable 0 Unfavorable Unfavorable