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Exercise 8-15 (Algo) Direct materials and direct labor variances LO P3 The following information relates to production activities of Mercer Manufacturing for the year. Actual
Exercise 8-15 (Algo) Direct materials and direct labor variances LO P3
The following information relates to production activities of Mercer Manufacturing for the year.
Actual direct materials used | 17,600 pounds at $4.85 per pound |
---|---|
Actual direct labor used | 18,235 hours at $35 per hour |
Actual units produced | 33,200 |
Standard quantity and price per unit for direct materials | 0.50 pound at $4.80 per pound |
Standard quantity and rate per unit for direct labor | 0.50 hour at $36 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. Required 1 Required 2 Compute the direct materials price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Actual Cost Standard Cost $ 0 $ 0 $ O 0 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct labor rate and efficiency variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Actual Cost Standard Cost X $ O $ $ 0 $ $ 0 0Step by Step Solution
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