Orion Corporation has established the following standards for the prime costs of one unit of its chief product, dartboards.
| Standard Quantity | Standard Priceor Rate | Standard Cost |
Direct material | 8 pounds | $ 1.75 per pound | $ 14.00 |
Direct labor | .25 hour | $ 8.00per hour | 2.00 |
Total |
|
| $ 16.00 |
During June, Orion purchased 160,000 pounds of direct material at a total cost of $304,000. The total wages for June were $42,000, 90 percent of which were for direct labor. Orion manufactured 19,000dartboards during June, using 142,500 pounds of direct material and 5,000 direct-labor hours.
Required: Compute the following variances for June, and indicate whether each is favorable or unfavorable.
1. The direct-material price variance.
2. The direct-material quantity variance.
3. The direct-labor rate variance.
4. The direct-labor efficiency variance.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.