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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Gandolph Game Company has established the following standards for the prime costs of one unit of its chief product, dartboards.
| Â | Standard Cost | Standard Quantity | Standard Price or Rate | ||||||
| Â Â Direct material | $ | 10.40 | Â | Â | 8.00 | kilograms | $ | 1.30 | per kilogram |
| Â Â Direct labor | Â | 4.00 | Â | Â | 0.50 | hour | $ | 8.00 | per hour |
| Â | Â | Â | Â | Â | Â | Â | Â | Â | Â |
| Â Â Total | $ | 14.40 | Â | Â | Â | Â | Â | Â | Â |
| Â | Â | Â | Â | Â | Â | Â | Â | Â | Â |
| Â | |||||||||
|
     During September, Gandolph purchased 285,000 kilograms of direct material at a total cost of $407,550. The total wages for September were $156,060, 90 percent of which were for direct labor. Gandolph manufactured 34,000 dartboards during September, using 255,000 kilograms of the direct material purchased in September and 18,360 direct-labor hours. |
| Required: |
Compute the following variances for September. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).)
| 1. | Direct-material price variance | Â | Â |
| 2. | Direct-material quantity variance | Â | Â |
| 3. | Direct-material purchase price variance | Â | Â |
| 4. | Direct-labor rate variance | Â | Â |
| 5. | Direct-labor efficiency variance |
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