Gandolph Game Company has established the following standards for the prime costs of one unit of its chief product, dartboards.

During September, Gandolph purchased 320,000 kilograms of direct material at a total cost of $ 608,000. The total wages for September were $ 84,000, 90 percent of which were for direct labor. Gandolph manufactured 38,000 dartboards during September, using 285,000 kilograms of the direct material purchased in September and 10,000 direct- labor hours.

Required:
Compute the following variances for September, and indicate whether each is favorable or unfavorable.
1. The direct-material price variance.
2. The direct-material quantity variance.
3. Direct-material purchase price variance.
4. The direct-labor rate variance.
5. The direct-labor efficiency variance.
(CMA,adapted)

Transcribed Image Text:

Standard Cost Standard Quantity 8 kilograms Standard Price or Rate Direct material Direct labor . $14.00 2.00 $1.75 per kilogram $8.00 per hour 25 hour Total.$16.00