Question

Next, compute the variances. Enter favorable variances as a positive number and unfavorable variances as a negative number. Do NOT enter F or U. input price variance for DM = $ Incorrect: Your answer is incorrect. input efficiency variance for DM = $ input price variance for DL = $ input efficiency variance for DL

Answer 1

Answer:

Direct Material Price Variances = ( Sp - Ap) Aq

                                                    = ( $1 - $0.75) *700

                                                    = (0.25)*700

                                                    = $175

Direct Material Quantity Variances = (Sq - Aq ) *Sp

                                                         = ( 600 -700)* $1

                                                        = (-100) *$1

                                                        = -$100

Total Material Variance = Quantity Variance + Price variance

                                       = -$100 +$175

                                      = $75

Direct Labor Expenditure Variance = ( Sr - Ar) *Ah

                                                          = ( $8 -$11) *50

                                                          = (-3) *50

                                                          = -$150

Direct Labor Efficiency = ( Sh -Ah ) *Sr

                                     = (40-50)* $8

                                     = (-10)* $8

                                    = -$80

Total Labor Variance = Expenditure Variance + Efficiency Variance

                                   = -$150 -$80

                                  = -$230

Explanation:

The Question is incomplete but i have attached a complete question  

Sp = Standard price

Ap = Actaul price

Sq = Standard Quantity = 6*100 = 600

Aq = Actual Quantity = 7*100 = 700

Sr = Standard Rate

Ar = Actual Rate

Ah = Actual Hours =0.5 *100 =50 hours

Sh = Standard hour = 0.4 *100 =40 hours