12 A-D

Ferry Chemical uses a standard cost system to account for the costs of its production of Chemical X. Standards are 1.43 gallons of materials at $89.00 per gallon and 9.0 hours of labor at a standard wage rate of $2.23. During September, Ferry Chemical produced 3,100 gallons of Chemical X. Ferry Chemical purchased and used 3,810 gallons of materials at a total cost of $412,920. Payroll totaled $56,075 for 27,030 hours worked. Required: 16 a. Calculate the direct materials price variance. Note: Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). b. Calculate the direct materials quantity variance. Note: Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) c. Calculate the direct labor rate variance. Note: Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). d. Calculate the direct labor efficiency variance. Note: Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). a. Price Variance b. Quantity Variance c. Rate Variance d. Efficiency Variance