Problem 8-3A

B D E G H J K L M N Simon Company set the following standard costs for one unit of its product. Direct materials (6 lbs. @ $5 per Ib.) Direct labor (2 hrs. @ $17 per hr.) Total standard cost $30 34 $64 The company incurred the following actual costs when it operated in October. The company produced 15,000 units during the month. Direct materials (91,000 lbs. @ $5.10 per lb.) Direct labor (30,500 hrs. @ $17.25 per hr.) Total costs $464,100 526,125 $990,225 Required: ) Compute the direct materials cost variance, including its price and quantity variances. ) Compute the direct labor cost variance, including its rate and efficiency variances. AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price ) Actual Cost Standard Cost X Compute the direct labor cost variance, including its rate and efficiency variances. AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate Actual Cost Standard Cost X Compute the direct labor cost variance, including its rate and efficiency variances. AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate Actual Cost Standard Cost X X