Refer to the data in the preceding exercise. Use diagrams to determine the direct-material and direct-labor variances. Indicate whether each variance is favorable or unfavorable.

Data From Preceding Exercise:-

Canandaigua Container Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. The following standards have been set by the production-engineering staff and the controller.

Actual material purchases amounted to 240,000 kilograms at $.62 per kilogram. Actual costs incurred in the production of 50,000 units were as follows:

Transcribed Image Text:

Direct labor: Quantity, .25 hour Rate, $12 per hour Direct material: Quantity, 4 kilograms Price, $.60 per kilogram