84) Miller Manufacturing Corporation has the following information regarding direct materials:
Actual pounds of direct materials
purchased and used47,000
Standard quantity of direct materials2.5 pounds per finished good
Actual production20,000 finished goods
Direct materials quantity variance$11,500 F
Direct materials price variance$9,400 U
Compute Miller's Standard Price (SP) per pound and Actual Price (AP) per pound of direct materials.
85) The following direct materials variance computations are incomplete. Fill in the missing values, and identify the direct materials flexible budget variance as favorable or unfavorable.
Direct materials price variance = ($? – $12.50) × 7,000 pounds = $3,500 U
Direct materials quantity variance = (? – 6,700 pounds) × $12.50 = ? U
Direct materials flexible budget variance = $?
86) The direct labor efficiency variance tells managers how much of the total labor variance is due to using a greater or lesser amount of time than anticipated.
87) The total direct labor variance is the sum of the direct labor rate variance and the direct labor efficiency variance.