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Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (15 pounds @ $3 per pound) Direct labor (3 hours @ $15 per hour) During May the company incurred the following actual costs to produce 8,500 units. Direct materials (131,400 pounds @ $2.80 per pound) Direct labor (28,600 hours @ $15.10 per hour) AR = Actual Rate SR Standard Rate AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price $ 45 45 $ 367,920 431,860 (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance.

Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (15 pounds @ $3 per pound) Direct labor (3 hours @ $15 per hour) During May the company incurred the following actual costs to produce 8,500 units. Direct materials (131,400 pounds @ $2.80 per pound) Direct labor (28,600 hours @ $15.10 per hour) AR = Actual Rate SR Standard Rate AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price $ 45 45 $ 367,920 431,860 (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance.

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 17P: Shinto Corp. uses a standard cost system and manufactures one product. The variable costs per...
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Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (15 pounds @ $3 per pound) Direct labor (3 hours @ $15 per hour) During May the company incurred the following actual costs to produce 8,500 units. Direct materials (131,400 pounds @ $2.80 per pound) Direct labor (28,600 hours @ $15.10 per hour) AR = Actual Rate SR = Standard Rate AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP Standard Price $ 45 45 $ 367,920 431,860 (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. Required Required 1 2 Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to 2 decimal places.) Actual Cost Standard Cost < Required 1 Required 2 >
Transcribed Image Text:Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (15 pounds @ $3 per pound) Direct labor (3 hours @ $15 per hour) During May the company incurred the following actual costs to produce 8,500 units. Direct materials (131,400 pounds @ $2.80 per pound) Direct labor (28,600 hours @ $15.10 per hour) AR = Actual Rate SR = Standard Rate AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP Standard Price $ 45 45 $ 367,920 431,860 (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. Required Required 1 2 Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to 2 decimal places.) Actual Cost Standard Cost < Required 1 Required 2 >
Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (15 pounds @ $3 per pound) Direct labor (3 hours @ $15 per hour) During May the company incurred the following actual costs to produce 8,500 units. Direct materials (131,400 pounds @ $2.80 per pound) $ 367,920 431,860 Direct labor (28,600 hours @ $15.10 per hour) AR Actual Rate SR Standard Rate AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price $45 45 (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. Required Required 1 2 Compute the direct materials price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Actual Cost < Required 1 Standard Cost Required 2 >
Transcribed Image Text:Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (15 pounds @ $3 per pound) Direct labor (3 hours @ $15 per hour) During May the company incurred the following actual costs to produce 8,500 units. Direct materials (131,400 pounds @ $2.80 per pound) $ 367,920 431,860 Direct labor (28,600 hours @ $15.10 per hour) AR Actual Rate SR Standard Rate AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price $45 45 (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. Required Required 1 2 Compute the direct materials price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Actual Cost < Required 1 Standard Cost Required 2 >
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