Required information EX 10-22, 23 (Algo) Use the following information for the Exercises below. Saskatchewan 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: Quantity, 0.26 hour Rate, $13.00 per hour Direct Material: Quantity, 5 kilograms Price, $0.62 per kilogram Actual material purchases amounted to 243,600 kilograms at $0.65 per kilogram. Actual costs incurred in the production of 42,000 units were as follows: Direct labor: Direct material: $160,776 for 12,180 hours $141,960 for 218,400 kilograms EX 10-22 (Algo) Part 1: Use the variance formulas to compute the direct-material price and quantity variances... 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. Note: 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 $ 1,260 Unfavorable Direct-material quantity variance Unfavorable Direct-material purchase price variance Unfavorable Direct-labor rate variance Unfavorable Direct-labor efficiency variance Unfavorable
Required information EX 10-22, 23 (Algo) Use the following information for the Exercises below. Saskatchewan 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: Quantity, 0.26 hour Rate, $13.00 per hour Direct Material: Quantity, 5 kilograms Price, $0.62 per kilogram Actual material purchases amounted to 243,600 kilograms at $0.65 per kilogram. Actual costs incurred in the production of 42,000 units were as follows: Direct labor: Direct material: $160,776 for 12,180 hours $141,960 for 218,400 kilograms EX 10-22 (Algo) Part 1: Use the variance formulas to compute the direct-material price and quantity variances... 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. Note: 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 $ 1,260 Unfavorable Direct-material quantity variance Unfavorable Direct-material purchase price variance Unfavorable Direct-labor rate variance Unfavorable Direct-labor efficiency variance Unfavorable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Sagar
Transcribed Image Text:Required information
EX 10-22, 23 (Algo) Use the following information for the Exercises below.
Saskatchewan 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:
Quantity, 0.26 hour
Rate, $13.00 per hour
Direct Material:
Quantity, 5 kilograms
Price, $0.62 per kilogram
Actual material purchases amounted to 243,600 kilograms at $0.65 per kilogram. Actual costs incurred in the production
of 42,000 units were as follows:
Direct labor:
Direct material:
$160,776 for 12,180 hours
$141,960 for 218,400 kilograms
EX 10-22 (Algo) Part 1: Use the variance formulas to compute the direct-material price and quantity
variances...
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.
Note: 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
$
1,260 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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