Business, 10.04.2020 17:39, Cheflulu5727
The following information describes production activities of Mercer Manufacturing for the year:
Actual raw materials used 16,000 lbs. at $4.05 per lb.
Actual factory payroll 5,545 hours for a total of $105,355
Actual units produced 30,000
Budgeted standards for each unit produced are 0.50 pounds of raw material at $4.00 per pound and 10 minutes of direct labor at $20 per hour.
(1) Compute the direct materials price and quantity variances.
(2) Compute the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.
Answers: 2
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The following information describes production activities of Mercer Manufacturing for the year:
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