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Archival Company uses a standard cost system for its single product. The following information is available: Standard Cost per Unit: Raw Material (1.5 grams x
Archival Company uses a standard cost system for its single product. The following information is available: Standard Cost per Unit: Raw Material (1.5 grams x $16 per gram) 24.00 Direct Labor (0.75 hours x $8 per $ hour) 6.00 Actuals for the current year: Units Produced 22,400 units Purchases of Raw Materials (21,000 grams x $17 per gram) $ 357,000 Raw Materials Used 33,400 grams Direct Labor (16,750 hours x $8 per hour) $ 48,575 Calculate the following variances: A) Raw Material Quantity and Price Variance B) Direct Labor Efficiency and Rate Variance
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