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Please help with these 2 Questions Q1. Orion Corporation has established the following standards for the prime costs of one unit of its chief product,
Please help with these 2 Questions
Q1.
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 6.88 pounds $1.18 per pound $ 5.58 Direct labor 8.3-8 hour $6.06 per hour 1-83 Total $ 8.48 During June, Orion purchased 227,000 pounds of direct material at a total cost of $274,670. The total wages for June were $22,576, 75 percent of which were for direct labor. Orion manufactured 36,000 dartboards during June, using 205,200 pounds of the direct material purchased in June and 11,520 directlabor 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}.) Direct-material price variance .1 2. Direct material quantity variance Direct labor rate variance Direct-labor ef ciency va riance The director of cost management for Portland Instrument Corporation compares each month's actual results with a monthly plan. The standard directlabor rates for the yearjust ended and the standard hours allowed, given the actual output in April, are shown in the following schedule. Labor class III 525.26 2,266 Labor class II 22 .26 2,266 Labor class I 16.26 2,266 A new union contract negotiated in March resulted in actual wage rates that differed from the standard rates. The actual directlabor hours worked and the actual direct-labor rates per hour experienced for the month of April were as follows: Labor class III $22.66 2,366 Labor' class II 23.26 2,566 Labor class I 12.46 1,956 Compute the directlabor rate variance for each labor class for the month oprril. {Indicate the effect of each variance by selecting "Favorable" or "Unfavc-Iable". Select "None" and enter "0" for no effect {i.e., zero variance].] Compute the direct-labor efficiency variance for each labor class for the month of April. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).) Labor Class TotalStep by Step Solution
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