managerial accounting

ACT310

(135 Points) Question Two During June, Sunday Company manufactures a single product. The Company's material purchases amounted to 5,500 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: Direct material: Quantity, 4 hours per unit Quantity, 2 pounds per unit Rate, $22.50 per hour Price, $10.10 per pound Required: 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