Problem 4 (15 points)

Elridge Company uses a standard costing system. The standard direct costs of manufacturing its only product and the operating data for the month just completed are as follows:

Direct materials, 8 kilograms per unit @ $5.00 per kilogram	$40.00
Direct labor, 3 hours per unit @ $16.40 per hour	$49.20
Actual output	6,300 units
Budgeted output	6,000 units
Purchases of direct materials	50,000 kilograms
Actual direct labor costs	$300,760
Actual direct labor hours	18,250 hours
Direct material quantity variance	$1,500 unfavorable
Direct material price variance	$7500 favorable

Direct Material Variances:

Use the table below to compute question 1,2 and 3

Actual Quantity of Input, @ Actual Price (AQ AP)	Actual Quantity of Input Purchased @ Standard Price (AQ SP)	Actual Quantity of Input Used, @ Standard Price (AQ SP)	Standard Quantity Allowed for Actual Output, @ Standard Price (SQ SP)

1. Actual kilograms of direct material used (2.5 points)

2. Actual price per kilogram of direct material purchased (2.5 points)

3. Total amount of direct material cost transferred to finished goods inventory (Tip: Standard Quantity Allowed for Actual Output at Standard Price) (2.5 points)

Direct Labor Variances:

Use the table below to compute question 4,5 and 6

Actual Quantity of Input, @ Actual Rate (AH AR)	Actual Quantity of Input Purchased @ Standard Rate (AH SR)	Standard Quantity Allowed for Actual Output, @ Standard Rate (SH SR)

4. Direct labor rate variance (2.5 points)

5. Direct labor efficiency variance (2.5 points)

6. Total amount of direct labor cost transferred to finished goods inventory (Tip: Standard Quantity Allowed for Actual Output at Standard Rate) (2.5 points)