Question
Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (15 pounds @ $5 per pound)
Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (15 pounds @ $5 per pound) Direct labor (3 hours @ $15 per hour) $ 75 45 During May the company incurred the following actual costs to produce 8,100 units. Direct materials (125,000 pounds @ $4.80 per pound) Direct labor (28,800 hours @ $15.10 per hour) AR = Actual Rate SR Standard Rate AQ Actual Quantity SQ Standard Quantity AP Actual Price SP Standard Price $ 600,000 434,880 (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance.
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