During June, Danby Company's material purchases amounted to 6,000 pounds at a price of $7.30 per pound. Actual costs incurred in the production of 2,000 units were as follows: Direct labor: $116,745 ($18.10 per hour) Direct material: $30,660 ($7.30 per pound) The standards for one unit of Danby Company's product are as follows: Direct labor: Direct material: Quantity, 3 hours per unit Quantity, 2 pounds per unit Rate, $18 per hour Price, $7 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 whether each variance is favorable or unfavorable.

During June, Danby Company's material purchases amounted to 6,000 pounds at a price of $7.30 per pound. Actual costs incurred in the production of 2,000 units were as follows: Direct labor: $116,745 ($18.10 per hour) Direct material: $30,660 ($7.30 per pound) The standards for one unit of Danby Company's product are as follows: Direct labor: Direct material: Quantity, 3 hours per unit Quantity, 2 pounds per unit Rate, $18 per hour Price, $7 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 whether each variance is favorable or unfavorable.

Name: During June, Danby Company's material purchases amounted to 6,000 pou
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Description: During June, Danby Company's material purchases amounted to 6,000 pounds at a priceof $730 per pound. Actual costs incurred in the production of 2,00o units were as follows:Direct labor:$116,745 ($18.10 per hour)Direct material:$30,660 ($7.30 per po

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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