During June, Danby Company’s material purchases amounted to 6,800 pounds at a price of $8.10 per pound. Actual costs incurred in the production of 2,400 units were as follows: Direct labor: $ 137,025 ($18.90 per hour) Direct material: $ 40,500 ($8.10 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, $18.80 per hour Price, $7.80 per pound Required: Compute the direct-material price and quantity variances, the direct-material purchase price variance, and the direct-labor rate and efficiency variances. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).)

Question

05-11-2019
Business

contestada

During June, Danby Company’s material purchases amounted to 6,800 pounds at a price of $8.10 per pound. Actual costs incurred in the production of 2,400 units were as follows: Direct labor: $ 137,025 ($18.90 per hour) Direct material: $ 40,500 ($8.10 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, $18.80 per hour Price, $7.80 per pound Required: Compute the direct-material price and quantity variances, the direct-material purchase price variance, and the direct-labor rate and efficiency variances. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).)

Respuesta :

Otras preguntas

A car accelerates from rest at a constant rate of 2 m/s^2 for 5 s. what is the speed of the car at the end of that time? g

Determine the domain of the function f(x)=1/3x^2+10x+8

(2x+3 2/5) + (5x -4/3

6+ 4/a + b/3 a=4 b=3

Find the value of c for which the line 3x +cy= 5 is parallel to the y axis,

what did John brown tried to do in 1859 ?

Houve uma falha ao abrir o quicktime. nº do erro 0. certifique-se de que o quicktime esteja corretamente instalado neste computador

To make a trail mix you must have 4 cups of pretzels and 2 cups of bread chips. What is the ratio of pretzels to bread chips.

What is flash fiction

facundobuzzetti facundobuzzetti · Answer 1 · 2019-11-05T13:52:19+01:00

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

During June, Danby Company’s material purchases amounted to 6,800 pounds for $8.10 per pound. Costs incurred in the production of 2,400 units.

The standards for one unit of Danby Company’s product are as follows: 2 pounds per unit, $7.80 per pound.

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (7.8 - 8.1)*6,800= $2,040 unfavorable

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Standard quantity= 2,400 units*2 pounds= 4,800 punds

Actual quantity= 40,500/8.10= 5000 pounds

Direct material quantity variance= (4,800 - 5,000)*7.8= $1,560 unfavorable

Purchase variance= 7.80 - 8.10= $0.30 unfavorable

Standard labor costs:

Direct labor: $ 137,025 ($18.90 per hour); 2,400 units.

Actual:

3 hours per unit; $18.80 per hour.

Direct labor efficiency variance= (SQ - AQ)*standard rate

Direct labor efficiency variance= (7,200 - 7,250)*18.80= $940 unfavorable

Direct labor price variance= (SR - AR)*AQ

Direct labor price variance= (18.80 - 18.90)*7,250= $725 unfavorable

ayokenny2001 ayokenny2001 · Answer 2 · 2022-03-24T12:25:40+01:00

What is cost analysis?

A cost analysis is a systematic process that businesses use to analyze which decisions to make and which to forgo.

1. Direct-material price

= (standard price - actual price)*actual quantity

= ( 7.8 - 8.1 ) * 6,800

= $2,040 unfavorable

2. Direct material quantity variance

= (standard quantity - actual quantity)*standard price

But,

Standard quantity

= 2,400 units*2 pounds

= 4,800 pounds

Actual quantity

= 40,500/8.10

= 5000 pounds

Direct material quantity variance

= (4,800 - 5,000)*7.8

= $1,560 unfavorable

3. Purchase variance

= 7.80 - 8.10

= $0.30 unfavorable

Standard labor costs:

Direct labor: $ 137,025 ($18.90 per hour); 2,400 units.

Actual:

3 hours per unit; $18.80 per hour.

4. Direct labor efficiency variance

= (SQ - AQ)*standard rate

= (7,200 - 7,250)*18.80

= $940 unfavorable

5. Direct labor price variance

= (SR - AR)*AQ

= (18.80 - 18.90)*7,250

= $725 unfavorable

Learn more about cost analysis here : https://brainly.com/question/14240757