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During April, Dryden Companys material purchases amounted to 8,500 pounds at a price of $7.70 per pound. Actual costs incurred in the production of 1,700
During April, Dryden Companys material purchases amounted to 8,500 pounds at a price of $7.70 per pound. Actual costs incurred in the production of 1,700 units were as follows: |
Direct labor: | $ | 134,655 | ($19.10 per hour) |
Direct material: | $ | 45,430 | ($7.70 per pound) |
The standards for one unit of Dryden Companys product are as follows: |
Direct Labor: | Direct Material: |
Quantity, 4 hours per unit | Quantity, 3 pounds per unit |
Rate, $19.00 per hour | Price, $7.40 per pound |
Required: |
Compute the direct-material price and quantity variances, the direct-material purchase price variance, and the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable. |
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