direct materials and labor ratios 428488

Please Show all work for all subsections(A D) of both problems(Ravena Labs and Orgeron Corporation) or no points will be awarded.

(Give formulas, plug numbers, then give answers to be sufficient)

1. Ravena Labs., Inc. makes a single product which has the following standards:

	Direct materials	2.5 ounces at $20 per ounce
	Direct labor	1.4 hours at $12.50 per hour

A. The direct materials price variance for October is:

B. The direct materials quantity variance for October is:

C. The direct labor rate variance for October is:

D. The direct labor efficiency variance for October is:

2. Orgeron Corporation’s most recent balance sheet and income statement appear below:

Statement of Financial Position December 31, Year 2 and Year 1 (in thousands of dollars)


Assets	Year 2	Year 1
Current assets:
Cash	$ 260	$ 120
Accounts receivable	160	190
Inventory	180	160
Prepaid expenses	60	70
Total current assets	660	540
Plant and equipment, net	680	750
Total assets	$1,340	$1,290

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$ 170	$ 150
Accrued liabilities	40	40
Notes payable, short term	80	90
Total current liabilities	290	280
Bonds payable	290	300
Total liabilities	580	580
Stockholders’ equity:
Preferred stock, $100 par value, 5%	100	100
Common stock, $2 par value	200	200
Additional paid in capitalAf?cAc‚¬”common stock	100	100
Retained earnings	360	310
Total stockholders’ equity	760	710
Total liabilities & stockholders’ equity	$1,340	$1,290

	Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars)


	Sales (all on account)	$1,260
	Cost of goods sold	800
	Gross margin	460
	Selling and administrative expense	272
	Net operating income	188
	Interest expense	38
	Net income before taxes	150
	Income taxes (30%)	45
	Net income	$ 105

Compute the following for Year 2: