144. Duval, Inc., budgets direct materials at $1/liter and requires 4 liters per unit of finished product. April's activities show usage of 832 liters to complete 196 units at a cost of $798.72.
Calculate the direct materials price and quantity variances.
145. Tiger, Inc., has developed the following standard cost data based on 60,000 direct labor hours, which is 75% of capacity:
|
Per Unit
|
Direct materials (6 lbs. @ $2/lb.)
|
$ 12
|
Direct labor (1 hrs. @ $8/hr.)
|
8
|
|
|
During the last period, the company operated at 80% of capacity and produced 128,000 units. Actual costs were:
Direct materials (760,000 lbs.)
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$1,558,000
|
Direct labor (126,000 hrs.)
|
1,014,300
|
|
|
Determine the direct materials price and quantity variances and the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.
Reference: 21_08
Fairfield Co. has collected the following information about its production activities for the current year:
Actual costs and quantities:
Direct materials used 95,000 lbs. @ $6.30 per lb.
Units completed during the year, 50,000 units
Standard costs and quantities:
Price per lb. of direct material, $6.05
Two lbs. of direct material per unit