Question 1)

Question 2)

Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (14 pounds @ $4 per pound) Direct labor (2 hours @ $16 per hour) $56 32 During May the company incurred the following actual costs to produce 8,600 units. Direct materials (122,500 pounds @ $3.80 per pound) $465,500 342,930 Direct labor (21,300 hours @ $16.10 per hour) 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. Complete this question by entering your answers in the tabs below. Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting favorable, unfavorable, no variance. Round "Rate per hour" answers to 2 decimal places.) Actual direct materials used Actual direct labor used Actuat units produced Standard quantity and price per unit for direct materials Standard quantity and rate per unit for direct labor 16,100 pounds at $4.10 per pound 16,735 hours at $20 per hour 30,200 0.50 pound at $4.05 per pound 0.50 hour at $21 per hour 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 and efficiency variances. Compute the direct materials price and quantity variances. (Indicate the effect of each variance by seiecting favorable, unfavorable, or no variance.) Compute the direct labor rate and efficiency variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)