Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials ( 1 6 pounds @ $ 3

Lucia Company has set the following standard cost per unit for direct materials and direct labor.
Direct materials (16 pounds @ $3 per pound)
Direct labor (2 hours @ $15 per hour)
$48
30
During May the company incurred the following actual costs to produce 8,600 units.
Direct materials pounds @ $2.80 per pound)
Direct labor (21,200 hours @ $15.10 per hour)
$393,400
320,120
AR= Actual Rate
SR= Standard Rate
AQ= Actual Q uantity
SQ= Standard Quantity
AP= Actual Price
SP = Standard Price
AH = Actual Hours
SH= Standard Hours
(1) Compute the direct materials price and quantity variances.
(2) Compute the direct labor rate variance and the direct labor efficiency variance.
Complete this question by entering your answers in the tabs below.
Required 1
Compute the direct materials price and quantity variances.
Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.
image text in transcribed

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

More Books

Students also viewed these Accounting questions