Number 1, 2, and 5 are correct, I just need help on number 3 and 4 please. Orion

Question

Number 1, 2, and 5 are correct, I just need help on number 3 and 4 please.

Orion Corporation has established the following standards for the prime costs of one unit of its chief product, dartboards Standard Price or Rate 2.20 per pound 7.00 per hour Standard Quantity Direct material Direct labor Total Standard Cost S 13.20 9.80 23.00 6.00 pounds 1.40 hour During June, Orion purchased 172,000 pounds of direct material at a total cost of $397,320. The total wages for June were $290,700 90 percent of which were for direct labor. Orion manufactured 25,000 dartboards during June, using 135,000 pounds of the direct material purchased in June and 38,250 direct-labor hours Required Compute the following variances for June. (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 2. Direct-material quantity variance 3. Direct-material purchase price variance 4. Direct-labor rate variance 5. Direct-labor efficiency variance S 14.850 Unfavorable 33,000 Favorable nfavorable avorable S 22,750 Unfavorable

Explanation / Answer

3 Direct material purchase price variance=397320-(172000*2.20)= $18920 Unfavorable 4 Direct labor wages=290700*90%= $261630 Direct labor rate variance=261630-(38250*7)= $6120 Favorable

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