Question

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.

Required:
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.
(CMA,adapted)


$1.99
Sales10
Views519
Comments0
  • CreatedApril 22, 2014
  • Files Included
Post your question
5000