Answered step by step
Verified Expert Solution
Question
1 Approved Answer
this is part two of the question Camila Company has set the following standard cost per unit for direct materials and direct labor. Direct materials
this is part two of the question
Camila Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (15 pounds # $5 per pound) $ 75 Direct labor (4 hours & $14 per hour) 56 During June the company incurred the following actual costs to produce 9,000 units. Direct materials (137,400 pounds & $4.70 per pound) $ 645,780 Direct labor (40,800 hours & $14.20 per hour) 579,360 AR = Actual Rate SR = Standard Rate it Inces 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. Required information [The following information applies to the questions displayed below.) Hart Company made 3,200 shelves using 22,200 pounds of wood costing $290,820. The company's direct materials standards for one shelf are 8 pounds of wood at $13.00 per pound. AQ = Actual Quantity SQ = Standard Quantity AP Actual Price SP Standard Price ces 1. Compute the direct materials price and quantity variances along with the total direct materials variance 2. Hart applies management by exception by investigating direct materials variances of more than 5% of actual direct materials costs, Which direct materials variances will Hart investigate further? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct materials price and quantity variances along with the total direct materiais variance (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Actual Cost Standard Cost C aw il Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started