Question Details

Indicate whether each variance is favorable 


1.Use the following cost information to calculate the direct labor rate and efficiency variances and indicate

Actual costs and quantities:
	Direct labor cost incurred…………………………….		$360,000
	Direct labor hours used………………………………		20,000 hours
	Units produced……………………………………….		45,000units
Standard costs and quatities:
	Direct labor rate per hour…………………………….		$16.50
	Hours to produce one unit ……………………………		0.5 hours

whether they are favorable or unfavorable.
2.The following information describes production activities of the Central 

Raw materials used………………………………………. 16,000 lbs. at $4.05 per lb.
Factory payroll…………………………………………….5,545 hours for a total of $72,085
Corp.:
30,000 units were completed during the year
Budgeted standards for each unit produced:
1/2 lb. of raw material at $4.15 per lb.
10 minutes of direct labor at $12.50 per hour
Compute the direct materials price and quantity and the direct labor rate and efficiency variances.
Indicate whether each variance is favorable or unfavorable.




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