Lionaire, Inc. has developed the following standard cost data based on 60,000 direct labor hours, which is 75% of capacity.?Per UnitDirect materials (6 lbs. @ $2.00/lb.)$12.00Direct labor (1 hrs. @ $8.00/hr.)8.00During the last period, the company operated at 80% of capacity and produced 128,000 units. Actual costs were:Direct materials (760,000 lbs.)$1,558,000Direct labor (126,000 hrs.)1,014,300Determine the direct materials price and quantity variances and the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.Direct materials:? Price variance Quantity variance ? Direct labor:? Rate variance Efficiency variance
What will be an ideal response?
Direct materials:
| AQ ? AP | = | 760,000 lbs. ? $2.05/lb* | = | $1,558,000 |
| AQ ? SP | = | 760,000 lbs. ? $2.00/lb | = | 1,520,000 |
| Direct materials price variance | $38,000 | U |
| AQ ? SP | = | 760,000 lbs. ? $2.00/lb | = | $1,520,000 |
| SQ ? SP | = | 768,000** lbs. ? $2.00/lb | = | 1,536,000 |
| Direct materials quantity variance | $16,000 | F |
Direct labor:
| AH ? AR | = | 126,000 hrs. ? $8.05/hr*** | = | $1,014,300 |
| AH ? SR | = | 126,000 hrs. ? $8.00/hr | = | 1,008,000 |
| Direct labor rate variance | $6,300 | U |
| AH ? SR | = | 126,000 hrs. ? $8.00/hr | = | $1,008,000 |
| SH ? SR | = | 128,000 hrs.**** ? $8.00/hr | = | 1,024,000 |
| Direct labor efficiency variance | $16,000 | F |
Business
You might also like to view...
Typically, operational control is accomplished through reports issued
A. weekly. B. daily. C. monthly. D. annually. E. randomly.
Business
Retailers are required to provide all of the following for disabled customers except
A. accessible dressing rooms. B. a lower checkout station. C. fully accessible bathrooms. D. accessible checkout aisles. E. a courtesy discount.
Business
________ is a licensing statute with the primary purpose of increasing earnings for the government
A) Usury statute B) Ratification statute C) Regulatory licensing statute D) Revenue raising statute
Business
Describe the implications the use of a second language has for cross-cultural communication.
What will be an ideal response?
Business