During June, Danby Company's material purchases amounted to 7,600 pounds at a price of $780 per pound. Actual costs incurred in the production of 1,900
During June, Danby Company's material purchases amounted to 7,600 pounds at a price of $780 per pound. Actual costs incurred in the production of 1,900 units were as follows: Direct labor: $148,365 ($18.90 per hour) Direct material: $ 48,360 ($7.80 per pound) The standards for one unit of Danby Company's product are as follows: Direct Labor: Direct Material: Quantity, 4 hours per unit Quantity, 3 pounds per unit Rate, $18.80 per hour Price, $7.50 per pound Required: Compute the direct-material price and quantity variances, the direct-material purchase price variance, and the direct-labor rate and efciency variances. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).) $ a o Direct-material quantity variance 3, 750 9 Unfavorable Direct-material purchase price variance 760 Q Direct-labor rate variance 4,700 6 Unfavorable Direct-labor efciency variance 785 6 Unfavorable g
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