9L-3

Ferry Chemical uses a standard cost system to account for the costs of its production of Chemical X. Standards are 2.1 gallons of materials at $112 per gallon and 17 hours of labor at a standard wage rate of $19. During September, Ferry Chemical produced 2,800 gallons of Chemical X. Ferry Chemical purchased and used totaled 3,640 gallons at a total cost of $410,180. Payroll totaled $309,730 for 25,780 hours worked. a. Calculate the direct materials price variance. (Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) Price Variance b. Calculate the direct materials quantity variance. (Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) Quantity Variance c. Calculate the direct labor rate variance. (Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) Rate Variance d. Calculate the direct labor efficiency variance. (Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) Efficiency Variance