Question
During June, Danby Companys material purchases amounted to 11,550 pounds at a price of $6.60 per pound. Actual costs incurred in the production of 2,750
During June, Danby Companys material purchases amounted to 11,550 pounds at a price of $6.60 per pound. Actual costs incurred in the production of 2,750 units were as follows: Direct labor: $ 203,632 ($17.80 per hour) Direct material: $ 56,694 ($6.60 per pound) The standards for one unit of Danby Companys product are as follows: Direct Labor: Direct Material: Quantity, 4 hours per unit Quantity, 3 pounds per unit Rate, $17.50 per hour Price, $6.40 per pound Required: Fill in the amounts in the tables below. Fill in the amounts in the tables below. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).). Round "Actual Price" and "Standard Price" to 2 decimal places.) Direct-Material Purchase Price Variances Actual Material Cost of Purchases Projected Material Cost of Purchases Actual Quantity Actual Price Actual Quantity Standard Price pounds purchased per pound pounds purchased per pound $0 $0 Unfavorable Direct-material purchase price variance Fill in the amounts in the tables below. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).). Round "Actual Price" and "Standard Price" to 2 decimal places.) Direct-Labor Rate and Efficiency Variances Actual Labor Cost Projected Labor Cost Standard Labor Cost Actual Hours Actual Rate Actual Hours Standard Rate Standard Hours Standard Rate 85,090 $6.60 hours used per hour hours used per hour hours allowed per hour $561,594 $0 $0 Unfavorable Unfavorable Direct-labor rate variance Direct-labor efficiency variance Unfavorable Direct-labor variance
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