Camila Company has set the following standard cost per unit for direct materials and direct labor....

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Camila Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (14 pounds @ $4 per pound) Direct labor (2 hours @ $14 per hour) During June the company incurred the following actual costs to produce 8,800 units. Direct materials (125,800 pounds @ $3.70 per pound) Direct labor (21,400 hours @ $14.15 per hour) AR Actual Rate SR Standard Rate $ 56 28 AQ Actual Quantity SQ Standard Quantity AP Actual Price: SP Standard Price $ 465,460 302,810 (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance. Camila Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (14 pounds @ $4 per pound) Direct labor (2 hours @ $14 per hour) During June the company incurred the following actual costs to produce 8,800 units. Direct materials (125,800 pounds @ $3.70 per pound) Direct labor (21,400 hours @ $14.15 per hour) AR Actual Rate SR Standard Rate $ 56 28 AQ Actual Quantity SQ Standard Quantity AP Actual Price: SP Standard Price $ 465,460 302,810 (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance.

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Variance Analysis Direct Material Price AQ SR less AQ AP ... View the full answer