Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. Direct materials (14 lbs. 54

image text in transcribed
image text in transcribed
image text in transcribed
Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. Direct materials (14 lbs. 54 per lb.) Direct labor (3 hrs. $16 per hr.) $56 48 During June the company incurred the following actual costs to produce 8.200 units. Direct materials (117,100 lbs. $3.50 per lb.) Direct labor (28,100 hrs. $16.15 per hr.). $444,980 453,815 AH = Actual Hours SH = Standard Hours 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. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) (2) Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) SR = Standard Rate AQ = Actual Quantity SQ - Standard Quantity AP = Actual Price SP = Standard Price (1) Compute the direct materials price and quantity variances (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) (2) Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no 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 whether each variance is favorable or unfavorable. Actual Cost Standard Cost $ 0 $ KR Required 2 > SR Standard Rate AQ-Actual Quantity SQ - Standard Quantity AP - Actual Price SP = Standard Price (1) Compute the direct materials price and quantity variances, (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) (2) Compute the direct labor rate variance and the direct labor efficiency variance (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct labor rate variance and the direct labor efficiency variance Indicate whether each variance is favorable or unfavorable. Actual Cost Standard Cost $ D $ 0 S 0

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

Internal Revenue Service Status Of GAO Financial Audit And Related Financial Management Recommendations

Authors: Government Accountability Office

1st Edition

1492351571, 978-1492351573

More Books

Students also viewed these Accounting questions

Question

2. How should this be dealt with by the organisation?

Answered: 1 week ago

Question

explain what is meant by the term fair dismissal

Answered: 1 week ago