Ferry Chemical uses a standard cost system to account for the costs of its production of Chemical X. Standards are 0.83 gallons of materials at $100.00 per gallon and 5.5 hours of labor at a standard wage rate of $7.09. During September, Ferry Chemical produced 5,100 gallons of Chemical X. Ferry Chemical purchased and used 3,810 gallons of materials at a total cost of $390,920. Payroll totaled $178,692 for 25,930 hours worked. Required: Calculate the direct materials price variance. Note: Do not round your Intermediate calculations. Indicate the effect of varlance by selecting "Favorable", "Unfavorable", or "None" for no effect (l.e., zero variance). Calculate the direct materials quantity variance. Note: Indicate the effect of varlance by selecting "Favorable", "Unfavorable", or "None" for no effect (1.e., zero varlance).) Calculate the direct labor rate variance. Note: Do not round your Intermediate calculations. Indicate the effect of varlance by selecting "Favorable", "Unfavorable", or "None" for no effect (l.e., zero variance). Calculate the direct labor efficiency variance. Note: Indicate the effect of varlance by selecting "Favorable", "Unfavorable", or "None" for no effect (l.e., zero varlance). Price Variance Quantity Variance Rate Variance Efficiency Variance
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Please help me with all answers I will give upvote thanku
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 4 images
