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During June, Danby Company’s material purchases amounted to 7,800 pounds at a price of $8.50 per pound. Actual costs incurred in the production of 1,600 units were as follows:   Direct labor: $ 137,280 ($19.20 per hour) Direct material: $ 43,350 ($8.50 per pound)         The standards for one unit of Danby Company’s product are as follows:   Direct Labor: Direct Material: Quantity, 4 hours per unit Quantity, 3 pounds per unit Rate, $19.10 per hour Price, $8.20 per pound

During June, Danby Company’s material purchases amounted to 7,800 pounds at a price of $8.50 per pound. Actual costs incurred in the production of 1,600 units were as follows:   Direct labor: $ 137,280 ($19.20 per hour) Direct material: $ 43,350 ($8.50 per pound)         The standards for one unit of Danby Company’s product are as follows:   Direct Labor: Direct Material: Quantity, 4 hours per unit Quantity, 3 pounds per unit Rate, $19.10 per hour Price, $8.20 per pound

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 8E: Direct labor variances The following data relate to labor cost for production of 20,000 cellular...
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During June, Danby Company’s material purchases amounted to 7,800 pounds at a price of $8.50 per pound. Actual costs incurred in the production of 1,600 units were as follows:
 

Direct labor: $ 137,280 ($19.20 per hour)
Direct material: $ 43,350 ($8.50 per pound)
       


The standards for one unit of Danby Company’s product are as follows:
 

Direct Labor: Direct Material:
Quantity, 4 hours per unit Quantity, 3 pounds per unit
Rate, $19.10 per hour Price, $8.20 per pound

 

 

 

Direct-material price variance $ 1,530 Unfavorable Direct-material quantity variance $ 2,460 Unfavorable Direct-material purchase price variance $ 2,340 Unfavorable Direct-labor rate variance Unfavorable Direct-labor efficiency variance Unfavorable
Transcribed Image Text:Direct-material price variance $ 1,530 Unfavorable Direct-material quantity variance $ 2,460 Unfavorable Direct-material purchase price variance $ 2,340 Unfavorable Direct-labor rate variance Unfavorable Direct-labor efficiency variance Unfavorable
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