Maurice Tutor

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    Argosy University/ Phoniex University/
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Category > Accounting Posted 17 Aug 2017 My Price 11.00

Canandaigua Container Company

Canandaigua Container 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:   Direct Material:
     Quantity, 0.10 hour      Quantity, 3 kilograms
     Rate, $5.00 per hour      Price, $0.30 per kilogram
 

  

Actual material purchases amounted to 34,000 kilograms at $0.325 per kilogram. Actual costs incurred in the production of 10,000 units were as follows:
 
     Direct labor:   $6,120 for 1,200 hours
     Direct material:   $10,075 for 31,000 kilograms
 
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. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Do not round intermediate calculations.)

Direct-material price variance    
Direct-material quantity variance    
Direct-material purchase price variance    
Direct-labor rate variance    
Direct-labor efficiency variance

 

Answers

Maurice Tutor
(5)
Status NEW Posted 17 Aug 2017 06:08 PM My Price 11.00

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