Question
Orion Corporation has established the following standards for the prime costs of one unit of its chief product, dartboards. Standard Quantity Standard Price or Rate
Orion Corporation has established the following standards for the prime costs of one unit of its chief product, dartboards. Standard Quantity Standard Price or Rate Standard Cost Direct material 8.00 pounds $ 1.30 per pound $ 10.40 Direct labor 0.50 hour $ 8.00 per hour 4.00 Total $ 14.40 During June, Orion purchased 285,000 pounds of direct material at a total cost of $407,550. The total wages for June were $156,060, 90 percent of which were for direct labor. Orion manufactured 34,000 dartboards during June, using 255,000 pounds of the direct material purchased in June and 18,360 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 "0" for no effect (i.e., zero variance).)
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