Reference no: EM131067365
Amber Company produces iron table and chair sets. During October, Amber's costs were as follows:
Actual purchase price
$ 1.90
per lb.
Actual direct labor rate
$ 7.10
per hour
Standard purchase price
$ 1.70
per lb.
Standard quantity for sets produced
930,000
lbs.
Standard direct labor hours allowed
15,000
Actual quantity purchased in October
1,075,000
lbs.
Actual direct labor hours
8,000
Actual quantity used in October
960,000
lbs.
Direct labor rate variance
5,100
F
1.
Calculate the total cost of purchases for October.
2.
Compute the direct materials price variance based on quantity purchased. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.)
3.
Calculate the direct materials quantity variance based on quantity used.(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.)
4.
Compute the standard direct labor rate for October. (Round your answer to 2 decimal places.)
5.
Compute the direct labor efficiency variance for October. (Round your intermediate instruction 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.)
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Amber company produces iron table and chair sets
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