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. Directmaterials(14pounds@$4perpound)Directlabor(2hours@$15perhour)$5630 During May the company incurred the following actual

image text in transcribedimage text in transcribedimage text in transcribed

Lucia Company has set the following standard cost per unit for direct materials and direct labor. Directmaterials(14pounds@$4perpound)Directlabor(2hours@$15perhour)$5630 During May the company incurred the following actual costs to produce 8,200 units. Direct materials (118,000 pounds @ $3.80 per pound) Direct labor (21,000 hours@\$15.10 per hour) $448,400 317,100 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct materials price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) 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.)

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

Auditing And Assurance Services A Systematic Approach

Authors: William F. Messier, Steven M. Glover, Douglas F. Prawitt

4th Edition

0071117474, 9780071117470

More Books

Students also viewed these Accounting questions