Question

The following data relate to the direct materials cost for the production of 2,200 automobile tires:

Actual:	52,200 lbs. at $1.95 per lb.
Standard:	50,600 lbs. at $1.90 per lb.

a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Direct Materials Price Variance
Direct Materials Quantity Variance
Total Direct Materials Cost Variance

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The following data relate to labor cost for production of 6,500 cellular telephones:

Actual:	4,420 hrs. at $15.00
Standard:	4,350 hrs. at $15.20

a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Rate variance	$____
Time variance	$____
Total direct labor cost variance	$____

Answer 1

Please post one question at a time next time

1. Materials Price Variance = (SP-AP) * AQ = (1.90-1.95)*52,200 = 2610 Unfavorable Materials Quantity Variance = (SQ-AQ) *SP = (50600-52200)*1.90 = 3040 Unfavorable Materials cost variance = 2160 U + 3040 U = 5650 Unfavorable

2. Labor rate variance = (SR-AR) *AH = (15.20 - 15) * 4420 = -884 Favourable (minus sign) ​​​​​​Labor time variance = (SH - AH) *SR = (4350-4420)*15.20 = 1064 Unfavorable Labor cost variance = 884 F + 1064 U = 180 Unfavorable