Chemlink Inc. uses a standard cost system to account for the costs of its production of...
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Chemlink Inc. uses a standard cost system to account for the costs of its production of Chemical X. Standards are 3.1 gallons of materials at $122 per gallon and 27 hours of labor at a standard wage rate of $29. During September, Chemlink produced 3,300 gallons of Chemical X. Chemlink purchased and used totaled 3,740 gallons at a total cost of $460,180. Actual direct labor cost totaled $319,730 for 26,280 hours worked. a. Calculate the direct materials price variance. (Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) Price Variance b. Calculate the direct materials quantity variance. (Indicate the effect of variance by selecting "Favorable". "Unfavorable", or "None" for no effect (i.e., zero variance).) Quantity Variance c. Calculate the direct labor rate variance. (Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) Rate Variance d. Calculate the direct labor efficiency variance. (Indicate the effect of variance by selecting "Favorable". "Unfavorable", or "None" for no effect (i.e., zero variance).) Efficiency Variance Chemlink Inc. uses a standard cost system to account for the costs of its production of Chemical X. Standards are 3.1 gallons of materials at $122 per gallon and 27 hours of labor at a standard wage rate of $29. During September, Chemlink produced 3,300 gallons of Chemical X. Chemlink purchased and used totaled 3,740 gallons at a total cost of $460,180. Actual direct labor cost totaled $319,730 for 26,280 hours worked. a. Calculate the direct materials price variance. (Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) Price Variance b. Calculate the direct materials quantity variance. (Indicate the effect of variance by selecting "Favorable". "Unfavorable", or "None" for no effect (i.e., zero variance).) Quantity Variance c. Calculate the direct labor rate variance. (Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) Rate Variance d. Calculate the direct labor efficiency variance. (Indicate the effect of variance by selecting "Favorable". "Unfavorable", or "None" for no effect (i.e., zero variance).) Efficiency Variance
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a Standard Rate 12200 3900 Variance b d Standard Quantity 1023000 791780 Variance c Standard R... View the full answer
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