Ferry Chemical uses a standard cost system to account for the costs of its production of...

Ferry Chemical uses a standard cost system to account for the costs of its production of Chemical X. Standards are 3.0 gallons of materials at $121 per gallon and 26 hours of labor at a standard wage rate of $28. During September, Ferry Chemical produced 3,250 gallons of Chemical X. Ferry Chemical purchased and used totaled 3,730 gallons at a total cost of $455,180. Payroll totaled $318,730 for 26,230 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).)

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).)

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).)

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).)

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ekkarill92 answered 1 year ago

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