1. Smith Industries uses a cost system that carries direct materials inventory at a standard...
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1. Smith Industries uses a cost system that carries direct materials inventory at a standard cost. The controller has established these standards for the cost of one basket (unit): Standard Quantity Standard Price Standard Cost Direct Material 5 pounds $2.60 per pound $ 18.00 Direct Labor 1.25 hours $12.00 per hour $ 15.00 Total prime cost $ 33.00 Smith Industries made 3,000 baskets in July and used 15,500 pounds of material to make these units. Smith Industries paid $39,370 for the 15,500 pounds of material. A. What was the direct materials price variance for July? ( 1 point) B. What was the direct materials quantity variance for July? What is the total direct materials cost variance? (1 point) C. If Smith Industries used 15,750 pounds to make the baskets, what would be the direct materials quantity variance? (1 point) 2. Case made 24,500 units during June, using 32,000 direct labor hours. They expected to use 31,450 hours per the standard cost card. Their employees were paid $15.75 per hour for the month of June. The standard cost card uses $15.50 as the standard hourly rate. Compute the direct labor rate and time variances for the month of June (1 point), and also calculate the total direct labor variance (1 point)
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