Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 11 Aug 2017 My Price 7.00

Danby Company

During June, Danby Company's material purchases amounted to 6,600 pounds at a price of $7.9 per pound. Actual costs incurred in the production of 2,300 units were as follows:

 
Direct labor: $131,835 ($18.7 per hour)
Direct material: $37,920 ($7.9 per pound)
The standards for one unit of Danby Company's product are as follows:
Direct labor: Direct material:
Quantity, 3 hours per unit Quantity, 2 pounds per unit
Rate, $18.6 per hour Price, $7.6 per pound
Required:

Compute the direct-material price and quantity variances and the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.
 
Direct-material price variance $ (Click to select)UnfavorableNoneFavorable
Direct-material quantity variance $ (Click to select)UnfavorableNoneFavorable
Direct-labor rate variance $ (Click to select)UnfavorableFavorableNone
Direct-labor efficiency variance $ (Click to select)FavorableUnfavorableNone

 

Answers

Maurice Tutor
(5)
Status NEW Posted 11 Aug 2017 01:08 PM My Price 7.00

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