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Question 2: (25 points) During April, Dryden Company's material purchases amounted to 7,600 pounds at a price of $7.60 per pound. Actual costs incurred in
Question 2: (25 points) During April, Dryden Company's material purchases amounted to 7,600 pounds at a price of $7.60 per pound. Actual costs incurred in the production of 2,200 units were as follows: Direct labor: $123,950 ($18.50 per hour) Direct material: $34,200 ($7.60 per pound) The standards for one unit of Dryden Company's product are as follows: Direct labor: Direct material: Quantity, 3 hours per unit Quantity, 2 pounds per unit Rate, $18.20 per hour Price, $7.40 per pound Required: Compute the following variances and indicate whether each variance is favorable or unfavorable: A. Direct-material price variance. (5 points) B. Direct-material quantity variance. (5 points) C. Direct-material purchase price variance. (5 points) D. Direct-labor rate variance. (5 points) E. Direct-labor efficiency variance. (5 points) Question 3: (15 points) Information taken from Collegiate Sporting Goods Company's records for the most recent year is as follows: $ Direct material used 317,000 Direct labour 219,000 Variable manufacturing overhead 88,000 Fixed manufacturing overhead 230,000 Variable selling and administrative costs 115,000 Fixed selling and administrative costs 43,000 Required: A. Assuming the company uses absorption costing, compute the inventoriable costs for the year. (8 points) Compute the year's inventoriable costs using variable costing. (7 points) B
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