Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

fill in all of the yellow blanks and let me know how you calculated it Lucia Company has set the following standard cost per unit

fill in all of the yellow blanks and let me know how you calculated it
image text in transcribed
image text in transcribed
image text in transcribed
Lucia Company has set the following standard cost per unit for direct materials and direct labor. Standard costs: Direct materials (15 pounds @ \$4 per pound) Direct labor (3 hours @ \$15 per hour) \begin{tabular}{|r|r|r|} \hline StandardQuantity & StandardPrice & \multicolumn{1}{|c|}{StandardCost} \\ \hline 15 & $4.00 & $60 \\ 3 & $15.00 & $45 \\ \hline \end{tabular} During May the company incurred the following actual \begin{tabular}{|c|r|} \hline Actual Units & 9,000 \\ \hline \end{tabular} 8 costs to produce 9,000 units. Actual costs: Direct materials (138,000 pounds @ \$3.75 per pound) Direct labor (31,000 hours @ \$15.10 per hour) AR= Actual Rate SR= Standard R Rate AQ= Actual Quantity SQ= Standard Quantity AP= Actual Price SP= Standard Price Required: (1) Compute the direct materials price and quantity variances. (Use cells A4 to E11 from the given information to complete this question and Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) (2) Compute the direct labor rate variance and the direct labor efficiency variance. (Use cells A4 to E11 from the given information to complete this question and indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Philosophy Of Auditing

Authors: Robert K. Mautz

19th Edition

0865390029, 978-0865390027

More Books

Students also viewed these Accounting questions