During June, Danby Company's material purchases amounted to 7,000 pounds at a price of $7.50 per pound. Actual costs incurred in the production of 1,500 units were as follows: Direct labor: Direct material: $ 119,325 Direct Labor: $ 36,000 The standards for one unit of Danby Company's product are as follows: Quantity, 4 hours per unit ($18.50 per hour) Rate, $18.40 per hour ($7.50 per pound) Direct Material: Quantity, 3 pounds per unit Price, $7.20 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 "0" for no effect (i.e., zero variance).)

During June, Danby Company's material purchases amounted to 7,000 pounds at a price of $7.50 per pound. Actual costs incurred in the production of 1,500 units were as follows: Direct labor: Direct material: $ 119,325 Direct Labor: $ 36,000 The standards for one unit of Danby Company's product are as follows: Quantity, 4 hours per unit ($18.50 per hour) Rate, $18.40 per hour ($7.50 per pound) Direct Material: Quantity, 3 pounds per unit Price, $7.20 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 "0" for no effect (i.e., zero variance).)

Name: Please do not give solution in image format thanku During June, Danby
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Description: Please do not give solution in image format thanku During June, Danby Company's materialpurchases amounted to 7,000 pounds at aprice of $7.50 per pound. Actual costsincurred in the production of 1,500 unitswere as follows:Directlabor:Directmaterial:$

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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