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...

80.2K

Verified Solution

Question

Accounting

imageimage

Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (16 pounds @ $4 per pound) Direct labor (2 hours @ $15 per hour) $ 64 30 During May the company incurred the following actual costs to produce 8,000 units. Direct materials (131,000 pounds @ $3.80 per pound) Direct labor (20,200 hours @ $15.10 per hour) $ 497,800 305,020 AR = Actual Rate SR = Standard Rate AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct materials price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Actual Cost Standard Cost X AP AQ 131,000 SP 4.00 $ 3.80 X $ 497,800 $ 0 $ 0 0 0 Required 1 Required 2 Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to 2 decimal places.) Actual Cost Standard Cost $ 0 $ 0 $ 0 0

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