Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Orion Corporation has established the following standards for the prime costs of one unit of its chief product, dartboards. Direct material Direct labor Total Standard
Orion Corporation has established the following standards for the prime costs of one unit of its chief product, dartboards. Direct material Direct labor Total Standard Quantity 13.00 pounds 2.10 hour Standard Price or Rate $ 2.90 per pound $14.00 per hour Standard Cost $ 37.70 29.40 $ 67.10 During June, Orion purchased 263,000 pounds of direct material at a total cost of $810,040. The total wages for June were $600,300, 90 percent of which were for direct labor. Orion manufactured 18,000 dartboards during June, using 225,000 pounds of the direct material purchased in June and 41,400 direct-labor hours. Required: Compute the following variances for June. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance).) Unfavorable S 26,100 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
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