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Ferry Chemical uses a standard cost system to account for the costs of its production of Chemical X. Standards are 0.78 gallorn. materials at $93.00
Ferry Chemical uses a standard cost system to account for the costs of its production of Chemical X. Standards are 0.78 gallorn. materials at $93.00 per gallon and 6.0 hours of labor at a standard wage rate of $3.39. During September, Ferry Chemicalipr juced. 5,100 gallons of Chemical X. Ferry Chemical purchased and used 3,610 gallons of materials at a total cost of $404,920. Payfuil totaled $85,468 for 26,630 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 (l.e., zero variance). b. Calculate the direct materials quantity variance. Note: Indicate the effect of variance by selecting "Favorable", "Unfavorable", or tNone" fot 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 zefecting "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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