161.Use the following cost information to calculate the direct labor rate and efficiency variances and indicate whether they are favorable or unfavorable.
Actual costs and quantities:
Direct labor cost incurred$360,000
Direct labor hours used20,000hours
Units produced45,000units
Standard costs and quantities:
Direct labor rate per hour$16.50
Hours to produce one unit0.5hours
162.The following information describes production activities of the Midtown Corp.:
Raw materials used16,000 lbs. at $4.05 per lb.
Factory payroll5,545 hours for a total of $72,085
30,000 units were completed during the year
Budgeted standards for each unit produced:
1/2 lb. of raw material at $4.15 per lb.
10 minutes of direct labor at $12.50 per hour
Compute the direct materials price and quantity and the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.
163.Ransom, Inc. budgets direct materials cost at $1.10/liter and each product 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. Compute the direct materials price and quantity variances. Indicate if the variance is favorable or unfavorable.
164.Lionaire, 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. @ $2.00/lb.)$12.00
Direct labor (1 hrs. @ $8.00/hr.)8.00
During the last period, the company operated at 80% of capacity and produced 128,000 units. Actual costs were:
Direct materials (760,000 lbs.)$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.
Direct materials:
Price variance
Quantity variance
Direct labor:
Rate variance
Efficiency variance