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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.
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