During June, Danby Company’s material purchases amounted to 6,000 pounds at a price of $7.30 per pound. Actual costs incurred in the production of 2,000 units were as follows: Direct

During June, Danby Company’s material purchases amounted to 6,000 pounds at a price of $7.30 per pound. Actual costs incurred in the production of 2,000 units were as follows: Direct labor:                   $116,745 ($18.10 per hour) Direct material:              $30,660 ($7.30 per pound) The standards for one unit of Danby Company’s product are as follows: Direct labor:                                    Direct material: Quantity, 3 hours per unit              Quantity, 2 pounds per unit Rate, $18 per hour                          Price, $7 per pound Refer to the data given above. Draw diagrams depicting the direct-material and direct-labor variances similar to the diagrams in Exhibits 10–2, 10–3, and 10–4. Transcribed Image Text: Exhibit 10-2
Actual Material Cost
Projected Materlal Cost
Standard Material Cost
Direct-Material Price and
Actual
Actual
Actual
Standard
Standard
Standard
Quantity Variances
Quantity
Price
Quantity
Price
Quantity
Price
$1.42
$1.40
10,000*
$1.40
10,250
pounds
used
10,250
DC
desserts
pounds
allowed
per
pounds
per
per
pound
used
pound
pound
$14,555
$14,350
$14,000
$205 Unfavorable
$350 Unfavorable
Direct-material
Direct-material
price variance
quantity variance
$555 Unfavorable
Direct-material variance
*Actual output x Standard quantity per unit = 2,000 units × 5 pounds per unit = 10,000 pounds allowed. Transcribed Image Text: Exhlblt 10-3
Actual Materlal Cost
Of Purchases
Projected Materlal Cost
Of Purchases
Direct-Material Purchase
Price Variarce
Actual
Actual
Actual
Standard
Quantity
Price
Quantity
Price
DC
desserts
12,500
$1.42
12,500
$1.40
pouncs
per
pounds
per
purchased
pound
purchased
pound
$17,750
$17.500
$250 Untavorable
Direcl-maleiial purchiase
price varlance
Exhibit 10-4
Actual Labor Cost
ProJected Labor Cost
Standard Labor Cost
Direct-Labor Rate and
Efficiency Variances
Actual
Actual
Actual
Standard
Standard
Standard
Hours
Rate
Hours
Rate
Hours
Rate
980
$21
980
$20
1,000*
$20
DC
desserts
hours
X
per
hours
per
hours
per
Ised
hour
Used
hour
allowed
hour
$20,580
$19,600
$20.000
$980 Urfavoralble
$400 Favorable
Direct-labor
Direct-labor
rcle varlance
efficiency variance
$580 Unfavorable
Direct-labor varlance
*Actual output X Standard hours per unit = 2,000 units X .5 hcur per unit = 1,000 hours allowed.

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