Reed Corp. Need help filling in the blanks.. Please show calculation ...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Reed Corp. Need help filling in the blanks.. Please show calculation
Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. Direct materials (14 lbs. $5 per lb.) Direct labor (4 hrs. e S15 per hr.) $70 60 During June the company incurred the following actual costs to produce 8,800 units. Direct materials (126,000 lbs. $4.75 per 1b. $598,500 Direct labor (38,900 hrs. $15.15 per hr.) 589,335 AH-Actual Hours SH Standard Hours AR- Actual Rate SR Standard Rate AQ Actual Quantity SO 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. Indicate whether each variance is favorable or unfavorable Answer is not complete Complete this question by entering your answers in the tabs below. Required 1Required 2 Compute the direct materials price and quantity variances and classify it as favorable or unfavorable Actual Cost Standard Cost AP AQ SP sa x SP 26,000x $ 4.75 6000x x5.00 598,500 630,000 31,500 $31,500 Favorable Direct materials price variance Direct materials quantity variance Total direct materials variance 0 Unfavorable Favorable Required Required 2> Answer is not complete Complete this question by entering your answers in the tabs below Required 1Required 2 Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable Actual Cost Standard Cost SR $ 15.00 SR $15.00 AH AR SH 8x $15.15 38,9x 32,000 589,335 583,500 480,000 $ 5,835 103,500 Direct labor rate variance Direct labor efficiency variance Total direct labor variance s 5,835 103,500 Required 1
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!