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Please answer the blue highlighted boxes Exercise 10-26 Straightforward Calculation of Variances (LO 10-1, 10-3) During June, Danby Company's material purchases amounted to 8,100 pounds
Please answer the blue highlighted boxes
Exercise 10-26 Straightforward Calculation of Variances (LO 10-1, 10-3) During June, Danby Company's material purchases amounted to 8,100 pounds at a price of $8.00 per pound. Actual costs incurred in the production of 1,600 units were as follows Direct labor: Direct material: $135,975 ($18.50 per hour) 39,200 ($8.00 per pound) The standards for one unit of Danby Company's product are as follows: Direct Labor: Direct Material: Quantity, 4 hours per unit Rate, $18.40 per hour Quantity, 3 pounds per unit Price, $7.70 per pound Required: Compute the direct-material price and quantity variances, the direct-material purchase price variance, and the direct-labor rate and efficiency variances. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance).) Direct-material price variance Direct-material quantity variance Direct-material purchase price variance Direct-labor rate variance Direct-labor efficiency variance nfavorable Unfavorable Unfavorable nfavorable nfavorableStep by Step Solution
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