Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I need help finding the direct labor rate variance and the direct labor efficiency variance (part 2 of the problem) Exercise 21-11 (Static) Direct materials
I need help finding the direct labor rate variance and the direct labor efficiency variance (part 2 of the problem)
Exercise 21-11 (Static) Direct materials and direct labor variances LO P3 Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (15 pounds @ 54 per pound) $ 60 Direct labor (3 hours $15 per hour) 45 During May the company incurred the following actual costs to produce 9,000 units Direct materials (138,eee pounds @ $3.75 per pound) $ 517,500 Direct labor (31,000 hours $15.10 per hour) 468,100 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 variance and the direct labor efficiency variance, Required 1 Required 2 Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour answers to 2 decimal places) Actual Cost Standard Cost $ 0 $ 0 $ 0 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started