Help (1273 were as follows: 18,500 hrs. at $17.40 Rates per Grect labor hr based

Question

Help (1273 were as follows: 18,500 hrs. at $17.40 Rates per Grect labor hr based on 100% of normal capacity of 19,310 direct labor hrs Direct labor 18,930 hrs. at $17.70 Factory overhead $54,950 variable cost Variable cost, $3.00 Fixed cost, $4.70 $90,757 fixed cost Each unit requires 0.25 hour of direct labor Required unfavorable variance as e positive number Direct Material Price Vanance Direct Materials Quentity Variance Total Direct Materials Cost Variance variance as a poseive number All work saved 232-1199-1-PB (1) pdt 3

Explanation / Answer

Computation of Direct Material Price & Quantity Variance Direct Material Price Price variance (SP-AP)AQ ($6-$5.90)*183200 $18,320 favourable Direc Material Quantity Variance (SQ-AQ)SP (185000 -183200)*$6 $10,800 Faovourable Computation of Direct Labour Rate & Efficiency Variance Direct Labour Rate variance (SR-AR)*AH ($17.40-$17)*18930 $7,572 Favourable Direct Labour Efficiency Variance (SH-AH)SR (18500-18930)*17.40 ($7,482) Un Favourable

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