material and labor variance 424014
Aug 29, 2021 | Uncategorized
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During June, Danby Company’s material purchases amounted to 6,600 pounds at a price of $7.9 per pound. Actual costs incurred in the production of 2,300 units were as follows:
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| Direct labor: |
$131,835 |
($18.7 per hour) |
| Direct material: |
$37,920 |
($7.9 per pound) |
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| The standards for one unit of Danby Company’s product are as follows: |
| Direct labor: |
Direct material: |
| Quantity, 3 hours per unit |
Quantity, 2 pounds per unit |
| Rate, $18.6 per hour |
Price, $7.6 per pound |
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| Required: |
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Compute the direct material price and quantity variances and the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.
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| Direct material price variance |
$ |
(Click to select)UnfavorableNoneFavorable |
| Direct material quantity variance |
$ |
(Click to select)UnfavorableNoneFavorable |
| Direct labor rate variance |
$ |
(Click to select)UnfavorableFavorableNone |
| Direct labor efficiency variance |
$ |
(Click to select)FavorableUnfavorableNone |
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