Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. lucia company has set the following standard cost

Lucia Company has set the following standard cost per unit for direct materials and direct...

60.1K

Verified Solution

Question

Accounting

Lucia Company has set the following standard cost per unit for direct materials and direct labor.
Direct materials (15 pounds @ $5 per pound) $ 75
Direct labor (3 hours @ $14 per hour)42
During May the company incurred the following actual costs to produce 8,300 units.
Direct materials (126,600 pounds @ $4.80 per pound) $ 607,680
Direct labor (29,100 hours @ $14.10 per hour)410,310
AR = Actual Rate
SR = Standard Rate
AQ = Actual Quantity
SQ = Standard Quantity
AP = Actual Price
SP = Standard Price
AH = Actual Hours
SH = Standard Hours
(1) Compute the direct materials price and quantity variances.
(2) Compute the direct labor rate variance and the direct labor efficiency variance.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students