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Saskatewan Can Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. The following standards have been set by
Saskatewan Can Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. The following standards have been set by the production-engineering staff and the controller. Direct Labor: Direct Material: Quantity, 0.20 hour Quantity, 5 kilograms Rate, $10.00 per hour Price, $0.50 per kilogram Actual material purchases amounted to 210,000 kilograms at $0.575 per kilogram. Actual costs incurred in the production of 30,000 units were as follows: Direct labor: $72 , 450 for 6,900 hours Direct material: $94, 875 for 165, 000 kilograms Required: 1. Use the variance formulas to compute the direct-material price and quantity variances, the direct-material purchase price variance, and the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable. (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 Unfavorable Direct-material quantity variance Unfavorable Direct-material purchase price variance Unfavorable Direct-labor rate variance Unfavorable Direct-labor efficiency variance UnfavorableComplete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Fill in the amounts in the tables below. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0' "per kilogram" to 2 decimal places.) kilograms used per kilogram kilograms used per kilogram Direct-material price variance Direct-material quantity variance Direct-material variance Required 2 > Complete this question by entering your answers in the tabs below. RequiredZ Required3 Fill in the amounts in the tables below. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Round "per kilogram" to 2 decimal places.) per kilogram Direct-material purchase price variance Required: Fill in the amounts in the tables below. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Fill in the amounts in the tables below. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" hour" to 2 decimal places.) hours used per hour hours used per hour hours allowed per hour bor rate variance Direct-labor variance
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