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.
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Ответ:
Explanation:
1 2 3 4 5
sales 15500 7420 8260 10130 19220
Inventory 2200
Ending
inventory 2968 3304 4052 7688
Production 16,268 7756 9008 13766
Total production = 46,798
Workings
Ending inventory
Quarter 1 =40%*7420
Quarter 2 40%*8260= 3304
Quarter 3 40%*10130=4052
Quarter 4 40%* 19220=7688
Production formula
Quarterly sales + ending inventory - opening inventory
Please note that the ending inventory of a quarter is the opening inventory of the next quarter