The following information describes production activities of the Midtown Corp.:
$\begin{array}{llr}
\text { Raw materials used } & \text { 16,000 lbs. at $ \$ 4.05 $ per $ \mathrm{lb} $}\
\text { Factory payroll } & \text { 5,545 hours for a total of $ \$ 72,085 $} \
\end{array}$

30,000 units were completed during the year Budgeted standards for each unit produced: 1/2 lb. of raw material at $4.15 per lb.
10 minutes of direct labor at $12.50 per hour
Compute the direct materials price and quantity and the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.

Question

The following information describes production activities of the Midtown Corp.:
$\begin{array}{llr}
  \text { Raw materials used } & \text {  16,000 lbs. at $ \$ 4.05 $ per $ \mathrm{lb} $}\
 \text { Factory payroll  } & \text {  5,545 hours for a total of $ \$ 72,085 $} \
\end{array}$
 
30,000 units were completed during the year Budgeted standards for each unit produced: 1/2 lb. of raw material at $4.15 per lb.
10 minutes of direct labor at $12.50 per hour
Compute the direct materials price and quantity and the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.

Quizplus · Accepted Answer

The Answer of The following information describes production activities of the Midtown Corp.:
$\begin{array}{llr}
  \text { Raw materials used } & \text {  16,000 lbs. at $ \$ 4.05 $ per $ \mathrm{lb} $}\
 \text { Factory payroll  } & \text {  5,545 hours for a total of $ \$ 72,085 $} \
\end{array}$
 
30,000 units were completed during the year Budgeted standards for each unit produced: 1/2 lb. of raw material at $4.15 per lb.
10 minutes of direct labor at $12.50 per hour
Compute the direct materials price and quantity and the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.

The Following Information Describes Production Activities of the Midtown Corp