During this period, the company produced 6,000 units of product. A comparison of standard and actual...

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During this period, the company produced 6,000 units of product. A comparison of standard and actual costs for the period on a total cost basis is also given above. There was no inventory of materials on hand to start the period. During the period, 20,400 metres of materials was purchased and used in production. The denominator level of activity for the period was 12,340 hours. Required: 1. For direct materials: a. Compute the price and quantity variances for the period. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Price variance Quantity variance $ 2,520 F $ (27,432) U Direct materials: Standard: 3.0 metres at $4.30 per metre Actual: 3.4 metres at $4.05 per metre Direct labour: Standard: 2.3 hours at $3.50 per hour Actual: 2.0 hours at $3.85 per hour Variable manufacturing overhead: Standard: 2.3 hours at $2.10 per hour Actual: 2.0 hours at $2.45 per hour Fixed manufacturing overhead: Standard: 2.3 hours at $3.70 per hour Actual: 2.0 hours at $3.75 per hour Total cost per unit Actual costs: 6,000 units at $33.87 Standard costs: 6,000 units at $34.29 Difference in cost-favourable $203,220 205,740 $ 2,520 Standard Actual Cost Cost $12.90 $13.77 8.05 7.70 4.83 4.90 8.51 7.50 $34.29 $33.87 During this period, the company produced 6,000 units of product. A comparison of standard and actual costs for the period on a total cost basis is also given above. There was no inventory of materials on hand to start the period. During the period, 20,400 metres of materials was purchased and used in production. The denominator level of activity for the period was 12,340 hours. Required: 1. For direct materials: a. Compute the price and quantity variances for the period. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Price variance Quantity variance $ 2,520 F $ (27,432) U Direct materials: Standard: 3.0 metres at $4.30 per metre Actual: 3.4 metres at $4.05 per metre Direct labour: Standard: 2.3 hours at $3.50 per hour Actual: 2.0 hours at $3.85 per hour Variable manufacturing overhead: Standard: 2.3 hours at $2.10 per hour Actual: 2.0 hours at $2.45 per hour Fixed manufacturing overhead: Standard: 2.3 hours at $3.70 per hour Actual: 2.0 hours at $3.75 per hour Total cost per unit Actual costs: 6,000 units at $33.87 Standard costs: 6,000 units at $34.29 Difference in cost-favourable $203,220 205,740 $ 2,520 Standard Actual Cost Cost $12.90 $13.77 8.05 7.70 4.83 4.90 8.51 7.50 $34.29 $33.87

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Based on the provided information we can analyze the standard costs and actual costs for a particular production process Heres the breakdown Direct ma... View the full answer