Orion Corporation has established the following standards for the prime costs of one unit of its chief product, dartboards.

During June, Orion purchased 160,000 pounds of direct material at a total cost of $304,000.The total wages for June was $42,000, 90 percent of which were for direct labor. Orion manufactured 19.000 dartboards during June, using 142,500 pounds of direct material and 5,000 direct-labor hours.
Required:
Compute the following variances for June, and indicate whether each is favorable or unfavorable.
1. The direct-material price variance.
2. The direct-material quantity variance.
3. The direct-labor rate variance,
4. The direct-labor efficiencyvariance.

Transcribed Image Text:

Direct materia Direct laba Standard Quantity 8 pounds 25 hour Standard Price or Rate $1.75 per pound $8.00 per hour Standard Cost $14.00 2.00 Toa $16.00