Variances

The following information describes production activities of Mercer Manufacturing for the year. Actual direct materials used Actual direct labor used Actual units produced 16,000 lbs. at $4.05 per lb. 5,545 hours for a total of $105,355 30,000 Budgeted standards for each unit produced are 0.50 pounds of direct material at $4.00 per pound and 10 minutes of direct laborat $20 per hour AQ - Actual Quantity SQ -- Standard Quantity AP - Actual Price SP - Standard Price AH - Actual Hours SH - Standard Hours AR - Actual Rate SR - Standard Rate (1) Compute the direct materials price and quantity variances (2) Compute the direct labor rate and efficiency variances Indicate whether each variance is favorable or unfavorable. Required 1 Required 2 Compute the direct materials price and quantity variances. Actual Cost Standard Cost Required 2 > Required 1 Required 2 Compute the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable. Actual Cost Standard Cost