During June, Danby Company's material purchases amounted to 7,800 pounds at a price of $8.50 per pound. Actual costs incurred in the production of 1,600 units were as follows: Direct labor: $137,280 ($19.20 per hour) $ 43,350 ($8.50 per pound) Direct material: The standards for one unit of Danby Company's product are as follows: Direct Labor: Direct Material: Quantity, 4 hours per unit Rate, $19.10 per hour Quantity, 3 pounds per unit Price, $8.20 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 "O" for no effect (i.e., zero variance).) Unfavorable Unfavorable Direct-material price variance Direct-material quantity variance Direct-material purchase price variance Unfavorable
During June, Danby Company's material purchases amounted to 7,800 pounds at a price of $8.50 per pound. Actual costs incurred in the production of 1,600 units were as follows: Direct labor: $137,280 ($19.20 per hour) $ 43,350 ($8.50 per pound) Direct material: The standards for one unit of Danby Company's product are as follows: Direct Labor: Direct Material: Quantity, 4 hours per unit Rate, $19.10 per hour Quantity, 3 pounds per unit Price, $8.20 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 "O" for no effect (i.e., zero variance).) Unfavorable Unfavorable Direct-material price variance Direct-material quantity variance Direct-material purchase price variance Unfavorable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![During June, Danby Company's material purchases amounted to 7,800 pounds at a price of $8.50 per pound. Actual costs incurred in
the production of 1,600 units were as follows:
Direct labor:
$137,280 ($19.20 per hour)
$ 43,350 ($8.50 per pound)
Direct material:
The standards for one unit of Danby Company's product are as follows:
Direct Labor:
Direct Material:
Quantity, 4 hours per unit
Rate, $19.10 per hour
Quantity, 3 pounds per unit
Price, $8.20 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 "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
Unfavorable](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe3dcfe3b-0348-4af5-ba12-497a79076b05%2F16e104fe-78b0-420b-8a63-8268340548b1%2F7yssul_processed.png&w=3840&q=75)
Transcribed Image Text:During June, Danby Company's material purchases amounted to 7,800 pounds at a price of $8.50 per pound. Actual costs incurred in
the production of 1,600 units were as follows:
Direct labor:
$137,280 ($19.20 per hour)
$ 43,350 ($8.50 per pound)
Direct material:
The standards for one unit of Danby Company's product are as follows:
Direct Labor:
Direct Material:
Quantity, 4 hours per unit
Rate, $19.10 per hour
Quantity, 3 pounds per unit
Price, $8.20 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 "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
Unfavorable
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