Hodge Co. has set the following standard direct materials and direct labor costs per unit for the product it manufactures.

Direct materials (16 lbs. $3 per lb.)

Direct labor (4 hrs. @ $15 per hr.)

$48

60

pse

During June Hodge Co. incurred the following actual costs to produce 8,100 units

Direct materials (131,600 lbs.

$2.75 per lb.)

Direct labor (35,800 hrs.

8 S15.15 per hr

$361,900

542,370

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 variance by selecting for favorable,

unfavorable, and no variance.)

(2) Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting

for favorable, unfavorable, and no variance.)

Complete this question by entering your answers

Hodge Co. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. Direct materials (16 lbs. $3 per lb.) $48 60 Direct labor (4 hrs. $15 per hr.) During June Hodge Co. Incurred the following actual costs to produce 8,100 units. Direct materials (131,600 lbs. $2.75 per lb.y Direct labor (35,800 hrs. $15.15 per hr.). $361,900 542,370 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 variance by selecting for favorable, unfavorable, and no variance.) (2) Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) Complete this question by entering your answers in the tabs below. 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 variance by selecting for favorable, unfavorable, and no variance.). (2) Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) 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 0 0 $ 0 0 Required 2 > $ $ 0 $