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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 1.00 hour Standard Price or Rate $ 1.80 per pound $13.00 per hour Standard Cost $23.40 13.00 $36.40 During June, Orion purchased 395,000 pounds of direct material at a total cost of $782,100. The total wages for June were $417,252, 75 percent of which were for direct labor. Orion manufactured 29,000 dartboards during June, using 371,200 pounds of the direct material purchased in June and 31,610 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).) 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
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