Can someone please help me with this problem, but in step by step. Direct Materi
ID: 2464308 • Letter: C
Question
Can someone please help me with this problem, but in step by step.
Direct Materials and Direct Labor Variances At the beginning of June, Cornerstone Printing Company budgeted 24,000 books to be printed in June at standard direct materials and direct labor costs as follows: Direct materials $50,400 Direct labor 16,800 Total $67,200 The standard materials price is $0.60 per pound. The standard direct labor rate is $14.00 per hour. At the end of June, the actual direct materials and direct labor costs were as follows: Actual direct materials $46,700 Actual direct labor 15,600 Total $62,300 There were no direct materials price or direct labor rate variances for June. In addition, assume no changes in the direct materials inventory balances in June. Cornerstone Printing Company actually produced 21,600 units during June. Determine the direct materials.quantity and direct labortime variances. Round your per unit computations to two decimal places, if required. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct materials quantity variance Direct labor time varianceExplanation / Answer
Particulars Standard Actual Qty Rate amount Qty=Amt/Rate Rate amount Materials 75,600.00 0.60 45,360.00 77,833.33 0.60 46,700.00 Labour 1,080.00 14.0000 15,120.00 1,114.29 14.00 15,600.00 Actual output 21,600.00 Materials reqd (50,400*21600/(24000*.60)) 75,600.00 Labour hrs reqd (16,800*21600/(24000*14)) 1,080.00 Since no Material price var and labour rate variance therefore actual rate is equal to standard rate DIRECT MATERIAL QUANTITY VARIANCE DMQV= (SQ-AQ)SP DMQV= (75,600-77,833.33).60 DMQV= 1,340 U DIRECT LABOUR TIME VARIANCE DLEV = (SH-AH)SR DLEV = (1,080 - 1,114.29)14 DLEV = 480 U