Gandolph Game Company has established the following standards for the prime costs of one unit of its chief product, dartboards.

During September, Gandolph purchased 320,000 kilograms of direct material at a total cost of $ 608,000. The total wages for September were $ 84,000, 90 percent of which were for direct labor. Gandolph manufactured 38,000 dartboards during September, using 285,000 kilograms of the direct material purchased in September and 10,000 direct- labor hours.

Compute the following variances for September, and indicate whether each is favorable or unfavorable.
1. The direct-material price variance.
2. The direct-material quantity variance.
3. Direct-material purchase price variance.
4. The direct-labor rate variance.
5. The direct-labor efficiency variance.

  • CreatedApril 22, 2014
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