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  3. amber company produces iron table and chair sets.

Amber Company produces iron table and chair sets. During October, Amber's costs were as follows:...

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Accounting

Amber Company produces iron table and chair sets. During October, Amber's costs were as follows:

Actual purchase price$ 2.30per lb.Actual direct labor rate$ 7.50per hourStandard purchase price$ 2.10per lb.Standard quantity for sets produced970,000lbs.Standard direct labor hours allowed11,000Actual quantity purchased in October1,115,000lbs.Actual direct labor hours10,000Actual quantity used in October1,000,000lbs.Direct labor rate variance$5,500F

REQUIRED:

Compute the standard direct labor rate for October.(Round your answer to 2 decimal places.)

Compute the direct labor efficiency variance for October.(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.)

1.Calculate the total cost of purchases for October.

2.Compute the direct materials price variance based on quantity purchased.

3.Calculate the direct materials quantity variance based on quantity used.

4.Compute the standard direct labor rate for October.

5.Compute the direct labor efficiency variance for October.

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