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Amber Company produces iron table and chair sets. During October, Amber's costs were as follows:


  Actual purchase price

$ 1.90

per lb.

  Actual direct labor rate

$ 7.10

per hour

  Standard purchase price

$ 1.70

per lb.

  Standard quantity for sets produced

930,000

lbs.

  Standard direct labor hours allowed

15,000


  Actual quantity purchased in October

1,075,000

lbs.

  Actual direct labor hours

8,000


  Actual quantity used in October

960,000

lbs.

  Direct labor rate variance

5,100

F


1.

Calculate the total cost of purchases for October.

2.

Compute the direct materials price variance based on quantity purchased. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.)

3.

Calculate the direct materials quantity variance based on quantity used.(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.)

4.

Compute the standard direct labor rate for October. (Round your answer to 2 decimal places.)

5.

Compute the direct labor efficiency variance for October. (Round your intermediate instruction 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.)

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91791743

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