Question: Hutto Corp has set the following standard direct materials and

Hutto Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures.
Direct materials (15 lbs. @ $4 per lb.). . . . . . . . . . . . . . . . . . . . .. . . . $60
Direct labor (3 hrs. @ $15 per hr.). . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
During May the company incurred the following actual costs to produce 9,000 units.
Direct materials (138,000 lbs. @ $3.75 per lb.) . . . . . . . . . . . . . $517,500
Direct labor (31,000 hrs. @ $15.10 per hr.). . . . . . . . . . . . . . . . . 468,100
Compute the
(1) Direct materials price and quantity variances
(2) Direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.

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  • CreatedApril 23, 2015
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