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Ferry Chemical uses a standard cost system to account for the costs of its production of Chemical X. Standards are 0.73 gallons of materials at
Ferry Chemical uses a standard cost system to account for the costs of its production of Chemical X. Standards are 0.73 gallons of materials at $94.00 per gallon and 6.0 hours of labor at a standard wage rate of $3.77. During September, Ferry Chemical produced 5,100 gallons of Chemical X. Ferry Chemical purchased and used 3,560 gallons of materials at a total cost of $402,920. Payroll totaled $94,964 for 26,530 hours worked. Required: a. Calculate the direct materials price variance. Note: Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). b. Calculate the direct materials quantity variance. Note: Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) c. Calculate the direct labor rate variance. Note: Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). d. Calculate the direct labor efficiency variance. Note: Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance)
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