Required information [The following information applies to the questions displayed below.] A manufactured product has the following information for June. Direct materials Direct labor Overhead Units manufactured AQ-Actual Quantity SQ Standard Quantity AP Actual Price SP- Standard Price Standard Quantity and Cost 6 pounds @ $8 per pound 2 DLH @ $16 per DLH 2 DLH @ $12 per DLH Compute the (1) direct materials price variance and (2) direct materials quantity variance. (Indicate the effect of each variance selecting favorable, unfavorable, or no variance. Round "Cost per unit" answers to 2 decimal places.) Actual Cost Actual Results 47,900 pounds @ $8.20 per pound 15,400 hours @ $16.60 per hour $ 196,100 7,900 units Standard Cost
Required information [The following information applies to the questions displayed below.] A manufactured product has the following information for June. Direct materials Direct labor Overhead Units manufactured AQ-Actual Quantity SQ Standard Quantity AP Actual Price SP- Standard Price Standard Quantity and Cost 6 pounds @ $8 per pound 2 DLH @ $16 per DLH 2 DLH @ $12 per DLH Compute the (1) direct materials price variance and (2) direct materials quantity variance. (Indicate the effect of each variance selecting favorable, unfavorable, or no variance. Round "Cost per unit" answers to 2 decimal places.) Actual Cost Actual Results 47,900 pounds @ $8.20 per pound 15,400 hours @ $16.60 per hour $ 196,100 7,900 units Standard Cost
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 3PA: Direct materials, direct labor, and factory overhead cost variance analysis Mackinaw Inc. processes...
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Concept explainers
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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![Required information
[The following information applies to the questions displayed below.]
A manufactured product has the following information for June.
Direct materials:
Direct labor
Overhead
Units manufactured
AQ-Actual Quantity
SQ Standard Quantity
AP Actual Price
SP- Standard Price
Standard Quantity and Cost
6 pounds @ $8 per pound
2 DLH @ $16 per DLH
2 DLH @ $12 per DLH
Compute the (1) direct materials price variance and (2) direct materials quantity variance. (Indicate the effect of each variance
selecting favorable, unfavorable, or no variance. Round "Cost per unit" answers to 2 decimal places.)
Actual Cost
Actual Results
47,900 pounds @ $8.20 per pound
15,400 hours @ $16.60 per hour
$ 196,100
7,900 units
Standard Cost](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcc262a17-aea7-4022-9fe8-cae21a346dc3%2Fbf8d22c2-7981-4c05-9dbd-2c9a95445307%2Fv8n2abf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
A manufactured product has the following information for June.
Direct materials:
Direct labor
Overhead
Units manufactured
AQ-Actual Quantity
SQ Standard Quantity
AP Actual Price
SP- Standard Price
Standard Quantity and Cost
6 pounds @ $8 per pound
2 DLH @ $16 per DLH
2 DLH @ $12 per DLH
Compute the (1) direct materials price variance and (2) direct materials quantity variance. (Indicate the effect of each variance
selecting favorable, unfavorable, or no variance. Round "Cost per unit" answers to 2 decimal places.)
Actual Cost
Actual Results
47,900 pounds @ $8.20 per pound
15,400 hours @ $16.60 per hour
$ 196,100
7,900 units
Standard Cost
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