Question

Check my world The following information describes production activities of Mercer Manufacturing for the year. 02:26:34 Actual direct materials used Actual direct labor used Actual units produced 23.000 lbs. at $4.40 per lb. 6,580 hours for a total of $129,626 36,000 Book Budgeted standards for each unit produced are 0.50 pounds of direct material at $4.20 per pound and 10 minutes of direct labor at $20.70 per hour. Him References 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct material price and quantity variances (Do not found intermediate calculations.

Answer 1

Direct materials
Actual cost								Standard cost
AQ	*	AP		AQ	*	SP		SQ	*	SP
23,000	*	4.4		23000	*	4.2		18000	*	4.2
	101200				96600				75600
			4600				21000
direct materials price variance				4600	U
direct materials qty variance				21000	U
total direct materials variance				25600	U
Direct labor
Direct labor
Actual cost								Standard cost
AH	*	AR		AH	*	SR		SH	*	SR
6,580	*	19.7		6580	*	20.7		6000	*	20.7
	129626				136206				124200
			6580				12006
direct labor rate variance				6580	F
direct labor efficiency variance				12006	U
total direct labor variance				5426	U