Answered step by step
Verified Expert Solution
Question
1 Approved Answer
During June, Sunday Company manufactures a single product. The Company's material purchases amounted to 6,000 pounds at a price of $10.60 per pound. Actual
During June, Sunday Company manufactures a single product. The Company's material purchases amounted to 6,000 pounds at a price of $10.60 per pound. Actual costs incurred in the actual output production of 1,650 units were as follows: Direct labor: $175,200 ($24.00 per hour) Direct material: $43,566 ($10.60 per pound) The standards for one unit of Sunday Company's product are as follows: Direct labor: Quantity, 4 hours per unit Rate, $22.50 per hour Required: Direct material: Quantity, 2 pounds per unit Price, $10.10 per pound Compute the following variances and indicate whether each variance is favorable or unfavorable: 1. Direct-material price variance. 2. Direct-material quantity variance. 3. Direct-material purchase price variance. 4. Direct-labor rate variance. 5. Direct-labor efficiency variance.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started