During June, Danby Company's material purchases amounted to 8,000 pounds at a price of $7.50 per...

 

Transcribed Image Text:

During June, Danby Company's material purchases amounted to 8,000 pounds at a price of $7.50 per pound. Actual costs incurred in the production of 2,100 units were as follows: Direct labor: Direct material: $ 135,525 ($19.50 per hour) $ 33,000 ($7.50 per pound) The standards for one unit of Danby Company's product are as follows: Direct Labor: Quantity, 3 hours per unit Rate, $19.40 per hour Direct Material: Quantity, 2 pounds per unit Price, $7.20 per pound EX 10-26 (Algo) Straightforward Calculation of Variances (LO 10-1, 10-3) Required: Compute the direct-material price and quantity variances, the direct-material purchase price variance, and the direct-labor rate and efficiency variances. Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance). During June, Danby Company's material purchases amounted to 8,000 pounds at a price of $7.50 per pound. Actual costs incurred in the production of 2,100 units were as follows: Direct labor: Direct material: $ 135,525 ($19.50 per hour) $ 33,000 ($7.50 per pound) The standards for one unit of Danby Company's product are as follows: Direct Labor: Quantity, 3 hours per unit Rate, $19.40 per hour Direct Material: Quantity, 2 pounds per unit Price, $7.20 per pound EX 10-26 (Algo) Straightforward Calculation of Variances (LO 10-1, 10-3) Required: Compute the direct-material price and quantity variances, the direct-material purchase price variance, and the direct-labor rate and efficiency variances. Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance).

Answer rating: 100% (QA)

To compute the directmaterial price and quantity variances the directmaterial purchase price variance and the directlabor rate and efficiency variances well use the given data and the standard costs f... View the full answer