Question
Reed Corp. has set the following standard direct materials and direct labor costs per unit for...
Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures.
| Direct materials (15 lbs. @ $4 per lb.) | $60 | |||
| Direct labor (3 hrs. @ $16 per hr.) | 48 | |||
During June the company incurred the following actual costs to
produce 8,300 units.
| Direct materials (127,400 lbs. @ $3.80 per lb.) | $ | 484,120 | ||
| Direct labor (29,000 hrs. @ $16.15 per hr.). | 468,350 | |||
AH = Actual Hours
SH = Standard Hours
AR = Actual Rate
SR = Standard Rate
AQ = Actual Quantity
SQ = Standard Quantity
AP = Actual Price
SP = Standard Price
(1) Compute the direct materials price and
quantity variances. (Indicate the effect of each variance
by selecting for favorable, unfavorable, and no
variance.)
(2) Compute the direct labor rate variance and the
direct labor efficiency variance. (Indicate the effect of
each variance by selecting for favorable, unfavorable, and no
variance.)
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Answer #1
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Reed Corp. has set the following standard direct materials and direct labor costs per unit for...
Reed Corp. has set the
following standard direct materials and direct labor costs per unit
for the product it manufactures.
Direct materials
(15 lbs. @ $4 per lb.)
$60
Direct labor (4
hrs. @ $15.00 per hr.)
60
During June the company incurred the following actual costs to
produce 9,000 units.
Direct materials
(137,400 lbs. @ $3.80 per lb.)
$
522,120
Direct labor
(40,200 hrs. @ $15.15 per hr.).
609,030
AQ = Actual Quantity
SQ = Standard Quantity
AP =...
Reed Corp. has set the following standard direct materials and direct labor costs per unit for...
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. @ $14 per hr.)
42
During June the company incurred the following actual costs to
produce 8,900 units.
Direct materials (136,300 lbs. @ $2.70 per lb.)
$
368,010
Direct labor (30,600 hrs. @ $14.15 per hr.).
432,990
AH = Actual Hours
SH = Standard Hours
AR =...
Reed Corp. has set the following standard direct materials and direct labor costs per unit for...
Reed Corp. has set the following standard direct materials and
direct labor costs per unit for the product it manufactures. Direct
materials (14 lbs. @ $3 per lb.) $42 Direct labor (3 hrs. @ $16 per
hr.) 48 During June the company incurred the following actual costs
to produce 8,200 units. Direct materials (117,600 lbs. @ $2.80 per
lb.) $ 329,280 Direct labor (29,100 hrs. @ $16.20 per hr.). 471,420
AH = Actual Hours SH = Standard Hours AR =...
1. Exercise 21-12 Direct materials and direct labor variances LO P3 Reed Corp. has set the...
1.
Exercise 21-12 Direct materials and direct labor variances LO P3
Reed Corp. has set the following standard direct materials and
direct labor costs per unit for the product it manufactures.
Direct materials (15 lbs. @ $4 per lb.) $60
Direct labor (2 hrs. @ $14 per hr.) 28
During June the company incurred the following actual costs to
produce 8,500 units.
Direct materials (130,500 lbs. @ $3.80 per lb.) $ 495,900
Direct labor (21,900 hrs. @ $14.15 per hr.)....
Exercise 21-12 Direct materials and direct labor variances LO P2 Reed Corp. has set the following...
Exercise 21-12 Direct materials and direct labor variances LO
P2
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. @ $14.00 per hr.)
42
During June the company incurred the following actual costs to
produce 8,500 units.
Direct materials (130,400 lbs. @ $2.75 per lb.)
$
358,600
Direct labor (29,900 hrs. @ $14.15 per hr.).
423,085...
Exercise 21-11 Direct materials and direct labor variances LO P2 Hutto Corp. has set the following...
Exercise 21-11 Direct materials and direct labor variances LO P2
Hutto Corp. has set the following standard direct materials and
direct labor costs per unit for the product it manufactures. Direct
materials (14 lbs. @ $4 per lb.) $56 Direct labor (2 hrs. @ $15 per
hr.) 30 During May the company incurred the following actual costs
to produce 8,100 units. Direct materials (116,100 lbs. @ $3.80 per
lb.) $ 441,180 Direct labor (19,700 hrs. @ $15.10 per hr.). 297,470...
Exercise 21-11 Direct materials and direct labor variances LO P2 Hutto Corp. has set the following...
Exercise 21-11 Direct materials and direct labor variances LO
P2
Hutto Corp. has set the following standard direct materials and
direct labor costs per unit for the product it
manufactures.
Direct materials (15 lbs. @ $4 per lb.)
$60
Direct labor (3 hrs. @ $16 per hr.)
48
During May the company incurred the following actual costs to
produce 8,900 units.
Direct materials (136,300 lbs. @ $3.80 per lb.)
$
517,940
Direct labor (31,300 hrs. @ $16.10 per hr.).
503,930...
23-11 Hutto Corp. has set the following standard direct materials and direct labor costs per unit...
23-11
Hutto Corp. has set the following standard direct materials and
direct labor costs per unit for the product it manufactures.
# Lbs/Hrs per unit
Cost per lb/Hr
Standard Cost
Materials
15
$4.00
$60
Direct Labor
3
$15.00
$45
During
May the company incurred the following actual costs to produce
9,000 units.
Total Lbs/Hrs
Cost per lb/Hr
Standard Cost
Materials
138,000
$3.75
$517,500
Direct Labor
31,000
$15.10
$468,100
Compute the (1) direct materials price and quantity variances and
(2) direct...
23-11 Hutto Corp. has set the following standard direct materials and direct labor costs per unit...
23-11
Hutto Corp. has set the following standard direct materials and
direct labor costs per unit for the product it manufactures.
# Lbs/Hrs per unit
Cost per lb/Hr
Standard Cost
Materials
15
$4.00
$60
Direct Labor
3
$15.00
$45
During
May the company incurred the following actual costs to produce
9,000 units.
Total Lbs/Hrs
Cost per lb/Hr
Standard Cost
Materials
138,000
$3.75
$517,500
Direct Labor
31,000
$15.10
$468,100
Compute the (1) direct materials price and quantity variances
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Budgeted standards for each unit produced are 0.50 pound of direct
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AH = Actual Hours
SH = Standard Hours
AR = Actual Rate
SR = Standard Rate
AQ =...
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