Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 boxesimage text in transcribed

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 nfavorable

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting

Authors: Charles T Horngren, Gary L Sundem, William O Stratton, Howard D Teall, George Gekas

5th Canadian Edition

0131922688, 978-0131922686

More Books

Students also viewed these Accounting questions