The following describes production activities of mercer manufacturing for the year.
act...
Business, 02.12.2019 18:31 idontknowwhyiam
The following describes production activities of mercer manufacturing for the year.
actual direct materials used 29,000 lbs. at $5.10 per lb. actual direct labor used 8,100 hours for a total of $164,430 actual units produced 48,000 budgeted standards for each unit produced are 0.50 pound of direct material at $5.05 per pound and 10 minutes of direct labor at $22.00 per hour. ah = actual hours sh = standard hours 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 and classify each as favorable or unfavorable. (indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. round "cost per unit" answers to 2 decimal places.)
(2) compute the direct labor rate and efficiency variances and classify each as favorable or unfavorable. (indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.)
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