Solution-Compute the direct labor rate variance and the

Compute the direct labor rate variance and the direct labor

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Reference no: EM132502233

Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures.

Direct materials (15 lbs. @ $3 per lb.) $45
Direct labor (3 hrs. @ $15 per hr.) 45

During June the company incurred the following actual costs to produce 8,100 units.

Direct materials (123,700 lbs. @ $2.70 per lb.) $333,990
Direct labor (27,800 hrs. @ $15.15 per hr.). 421,170

AH = Actual Hours
SH = Standard Hours
AR = Actual Rate SR = Standard Rate A0 = Actual Quantity
SQ = Standard Quantity
AP = Actual Price SP = Standard Price

Question (1) Compute the direct materials price and quantity variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.)

Question (2) Compute the direct labor rate variance and the direct labor ef?ciency variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.)

Reference no: EM132502233

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Compute the direct labor rate variance and the direct labor

Reference no: EM132502233

Reference no: EM132502233

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