During June, Danby Company\'s material purchases amounted to 15,600 pounds at a

Question

During June, Danby Company's material purchases amounted to 15,600 pounds at a price of $760 per pound. Actual costs incurred in the production of 3,000 units were as follows: Direct labor: Direct material: 94,164 ($7.60 per pound) $322,192 ($20.80 per hour) The standards for one unit of Danby Company's product are as follows Direct Labor: Direct Material: Quantity, 5 hours per unit Rate, $20.00 per hour Quantity, 4 pounds per unit Price, $6.90 per pound Required Fill in the amounts in the tables below Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Fill in the amounts in the tables below. (Indicate the effect of each variance by selecting "Favorable" or "unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).). Round "Actual Price" and "Standard Price" to 2 decimal places.) Direct-Material Price and Quantity Variances Projected Material Cost Actual Material Cost Standard Material Cost Actual Quantity Actual Quantity Standard Price Standard Quantit Standard Price Actual Price pounds allowed pounds used per pound pounds used per pound per pound Direct-material price variance Direct-material quantity variance Direct-material variance Required 1 Required 2>

Explanation / Answer

Direct Material Price and Quantity Variances Actual Material Cost Projected Material Cost Standard Material Cost Actual Quantity x Actual Price Actual Quantity x Standard Price Standard Quantity x Standard Price 12390           7.60 12390 6.90 12000           6.90 pounds used per pound pounds used per pound pounds allowed per pound      94,164      85,491     82,800 94,164 - 85,491 85,491 - 82,800 U Direct Material Price Variance 8673 U 2691 U Direct Material Quantity Variance 11364 U Direct Material Variance Direct Material Purchase Price Variances Actual Material Cost Projected Material Cost Actual Quantity x Actual Price Actual Quantity x Standard Price 15600           7.60 15600 6.90 pounds purchased per pound pounds purchased per pound                        1,18,560                        1,07,640 118,560-107,640 10920 U Diect Material Purchase Price Variance Direct Labor Rate and Eficiency Variances Actual Labor Cost Projected Labor Cost Standard Labor Cost Actual Hours x Actual Price Actual Hours x Standard Rate Standard Hours x Standard Rate 15490         20.80 15490 20.00 15000         20.00 Hours used per hour Hours used per hour Hours allowed per hour 3,22,192 3,09,800 3,00,000 3,22,192 - 3,09,800 3,09,800 - 3,00,000 U Direct Labor Rate Variance 12392 U 9800 U Direct Labor Efficiency Variance 22192 U Direct Labor Variance

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