Question

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 Standard (6 lbs. @ $7 per lb.) (2 hrs. @ $15 per hr.) (2 hrs. @ $12 per hr.) Actual 43,600 lbs. @ $7.10 per lb. 14,000 hrs. @ $15.40 per hr. $179,700 7,200 AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price Compute the direct materials price variance and the direct materials quantity variance. Indicate whether each variance is favorable or unfavorable. Standard Cost х AP AQ х SQ х SP Actual Cost AQ 14,000 $ 215,600 SP $ 15.00: $ 15.40 14,000 х х $ 210,000 $ 5,600 $ 0 $ 5,600 0