Question
Ferry Chemical uses a standard cost system to account for the costs of its production of Chemical X. Standards are 1.4 gallons of materials at
Ferry Chemical uses a standard cost system to account for the costs of its production of Chemical X. Standards are 1.4 gallons of materials at $105 per gallon and 10 hours of labor at a standard wage rate of $12. During September, Ferry Chemical produced 2,600 gallons of Chemical X. Ferry Chemical purchased and used totaled 3,560 gallons at a total cost of $381,180. Payroll totaled $302,730 for 25,430 hours worked. Calculate the following variances: a. direct materials price variance b. direct materials quantity variance c. direct labor rate variance d. 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