# Build_a_Spreadsheet_10_28 - Direct-material quantity...

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DATA INPUT Standard Direct labor: Standard Direct material: Quantity 0.25 hour Quantity 4 kilograms Rate \$16.00 per hour Price \$0.80 per kilogram Actual data: Material purchases 240,000 kilograms Price \$0.81 per kilogram Actual costs incurred in the production of: 50,000 units were as follows: Direct labor: \$211,900 for 13,000 hours Direct material: \$170,100 for 210,000 kilograms SOLUTION 1. Direct-material price variance = PQ x (AP - SP) = 240,000 x \$0.81 - \$0.80 = \$2,400 Unfavorable
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Unformatted text preview: Direct-material quantity variance = SP x (AQ - SQ*) = \$0.80 x 210,000 -200,000 = \$8,000 Unfavorable * SQ = 200,000 kgs = 50,000 units x 4 kgs per unit Direct-labor rate variance = AH x (AR*-SR) = 13,000 x \$16.30 -\$16.00 = \$3,900 Unfavorable * AR = \$211,900 / \$13,000 = \$16.30 Direct-labor rate variance = SR x (AH - SH*) = \$16.00 x 13,000 -12,500 = \$8,000 Unfavorable * SH = 12,500 hrs. = 50,000 units x 0.25 hrs per unit...
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