The following describes production activities of Mercer Manufacturing for the year. Actual direct materials used18,000 lbs. at $4.15 per lb.
Actual direct labor used5,555 hours for a total of $106,656
Actual units produced30,060
Budgeted standards for each unit produced are 0.50 pound of direct material at $4.10 per pound and 10 minutes of direct labor at $20.20 per hour.
AH = Actual Hours
SH = Standard Hours
AR = Actual Rate
SR = Standard Rate
AQ = Actual Quantity
SQ = Standard Quantity
AP = Actual Price
SP = Standard Price
(1) Compute the direct materials price and quantity variances and classify each as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round "Cost per unit" answers to 2 decimal places.)
(2) Compute the direct labor rate and efficiency variances and classify each as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.)

See below

Explanation:

1

Direct material price variance

= (Standard price - Actual price) × Actual quantity

= ($4.10 - $4.15) × 18,000

= -$0.05 × 18,000

= $900 Unfavorable

Direct material quantity variance

= (Standard quantity - Actual quantity) × Standard price

= (30,060 × 0.50 - 18,000) × $4.10

= (15,030 - 18,000) × $4.10

= -2,970 × $4.10

= 12,177 Unfavorable

2.

Direct labor rate variance

= (Standard rate - Actual rate) × Actual quantity

= ($20.2 - $106,656/5,555 hours) × 18,000

= ($20.2 - $19.2) × 5,555

= $1 × 5,555

= $5,555 Favourable

Direct labor efficiency variance

= (Standard quantity - Actual quantity) × Standard rate

= (10/60 × 30,060 - 5,555) × $20.2

= (5,010 - 5,555) × $20.2

= -545 × $20.2

= $11,009 Unfavourable

answertop managers;

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.