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Ferry Chemical uses a standard cost system to account for the costs of Its production of Chemical X. Standards are 0.83 gallons of materlals at
Ferry Chemical uses a standard cost system to account for the costs of Its production of Chemical X. Standards are 0.83 gallons of materlals at $100.00 per gallon and 5.5 hours of labor at a standard wage rate of $7.09. During September, Ferry Chemical produced 5,100 gallons of Chemical X. Ferry Chemical purchased and used 3,810 gallons of materlals at a total cost of $390,920. Payroll totaled $178,692 for 25,930 hours worked. Requlred: a. Calculate the direct materlals price varlance. Note: Do not round your intermedlate calculations. Indlcate the effect of varlance by selecting "Favorable", "Unfavorable", or "None" for no effect (l.e., zero varlance). b. Calculate the direct materials quantity varlance. Note: Indlcate the effect of varlance by selecting "Favorable", "Unfavorable", or "None" for no effect (I.e., zero varlance).) c. Calculate the direct labor rate varlance. Note: Do not round your intermedlate calculations. Indlcate the effect of varlance by selecting "Favorable", "Unfavorable", or "None" for no effect (l.e., zero varlance). d. Calculate the direct labor efficlency varlance. Note: Indlcate the effect of varlance by selecting "Favorable", "Unfavorable", or "None" for no effect (l.e., zero varlance)
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