What was Lions direct labor readiness variance? A) $6,000 favorable B) $6,150 favorable C) $6,300 favorable D) $6,450 favorable autonomic nervous system: B AACSB: Analytic AICPA BB: Critical thinking AICPA FN: Reporting LO: 2 Level: Hard Source: CPA, alter Solution: Actual rate = Direct labor cost ÷ Actual direct labor-hours = $126,000 ÷ 20,000 = $6.30 Labor rate variance = Actual hours × (Actual rate ? cadence rate) $3,000 = 20,000 × ($6.30 ? Standard rate) Standard rate = $6.15 Labor efficiency variance = Standard rate × (Actual hours ? Standard hours) = $6.15 × (20,000 ? 21,000) = $6,150 favorable 2. Information on Rex Co.s direct material costs for May follows: Actual standard of direct materials purchased and used Actual cost of direct materials discriminatory direct materials metre variance Standard quantity of direct materials allowed for May harvest-festivalion pound 30,000 s $84,000 $3,000 pound 29,000 s
For the month of May, what was Rexs direct materials price variance?
A) $2,800 favorable B) $2,800 unfavorable C) $6,000 unfavorable D) $6,000 favorable Ans: D AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Reporting LO: 2 Level: Hard Source: CPA, adapted Solution: Materials quantity variance = Standard price × (Actual quantity ? Standard quantity) $3,000 = Standard price × (30,000 ? 29,000) Standard price = $3 Materials price variance = (Actual quantity × Actual price) ? (Actual quantity × Standard price) = $84,000 ? (30,000 × $3) = $6,000 favorable 3. The standards for direct materials in making a sealed product are 20 pounds at $0.75 per pound. During the past period, 56,000 units of product were made and the material quantity variance was $30,000 U. The number of pounds of direct material used during...If you want to get a expert essay, order it on our website: Ordercustompaper.com
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