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).)

Expert Solution

ekkarill92 answered 2 years ago

11. Regent Corp. uses a standard cost system to account for the costs of its one...

11. Regent Corp. uses a standard cost system to account for the costs of its one product. Materials standards are 2.8 pounds of material at $13 per pound, and labor standards are 4 hours of labor at a standard wage rate of $10. During July Regent Corp. produced 3,280 units. Materials purchased and used totaled 10,050 pounds at a total cost of $132,050. Payroll totaled $147,380 for 13,240 hours worked. a. Calculate the direct materials price variance. (Do not round...

Viking Corp. uses a standard cost system to account for the costs of its one products....

Viking Corp. uses a standard cost system to account for the costs of its one products. Material standards are 13 pounds of material at $1.30 per pound and 3 hours of labor at a standard wage rate of $13.4. During November, Viking Corp. produced and sold 2,400 units. Material purchases totaled 31,470 pounds at a total cost of $41,421. Material usage totaled 31,290 pounds. Payroll totaled $97,282 for 7,430 hours worked. Viking Corp. does not maintain inventories other than direct...

Regency Corp. uses a standard cost system to account for the costs of its one product....

Regency Corp. uses a standard cost system to account for the costs of its one product. Fixed overhead is applied to production at a rate of $27.10 per unit, based on budgeted production is 2,445 per month. During November, Regency produced 2,295 units. Fixed overhead incurred totaled $70,420. a. Calculate the fixed overhead spending variance. b. Calculate the fixed overhead volume variance.

Hayes Chemical Company produces a chemical used in dry cleaning. Its accounting system uses standard costs....

Hayes Chemical Company produces a chemical used in dry cleaning. Its accounting system uses standard costs. Standards for each 0.5-gallon can of chemical and actual data for Hayes Chemical follow: Standards and budgeted information: Gallons of material per can of chemical 1.20 Hours of labor per can of chemical 1.50 Standard cost per gallon of material $6.00 Standard cost per hour of labor $9.00 Overhead application rate per can $7.75 Expected production - cans...

Your Corporation uses a standard cost system to collect costs related to the production. The labor...

Your Corporation uses a standard cost system to collect costs related to the production. The labor standards for each unit are 1.2 hours at a standard cost of $18 per hour. During the month, employees work 34,000 hours in the production of 30,000 units. The total labor cost was $649,400. What is the efficiency (quantity) variance for the month? $37,400 unfavorable $37,400 favorable $36,000 unfavorable $36,000 favorable

West Manufacturing Company uses a standard cost system in its accounting records. The standard costs for...

West Manufacturing Company uses a standard cost system in its accounting records. The standard costs for its one product are as follows: Materials 8 pounds at $1.00 = $ 8.00 Direct labor 1.2 hours at $14.00 = 16.80 Variable overhead 1.2 direct-labor hours at $4.00 = 4.80 Fixed overhead 1.2 direct-labor hours at $6.00 = 7.20 Total standard cost $36.80 The standard costs per unit are based on normal capacity of 3,600 direct-labor...

Danny Electronics Corporation uses a standard cost system for the production of its water ski radios....

Danny Electronics Corporation uses a standard cost system for the production of its water ski radios. The direct labor standard for each radio is 0.9 hours. The standard direct labor cost per hour is $7.20. During the month of August, Danny's water ski radio production used 6,600 direct labor-hours at a total direct labor cost of $48,708. What is Danny's labor rate variance for August? $1,188Favorable $1,188 Unfavorable $2,160 Favorable $2,160Unfavorable Emily Corporation's cost of goods manufactured for the just...

Akyede Groups of Companies uses a standard cost system for its production process and applies overhead...

Akyede Groups of Companies uses a standard cost system for its production process and applies overhead based on direct labour hours. The following information is available for May when Akyede produced 4,500 units: Standard: Direct labour hour per unit - 2.50, Variable overhead per direct labour hour - GH¢1.75, the fixed overhead per direct labour hour - GH¢3.10, Budgeted variable overhead - GH¢21,875, Budgeted fixed overhead - GH¢38,750. Actual: Direct labour hours - 10,000, Variable overhead- GH¢26,250, Fixed overhead- GH¢38,000....

Highlander Corporation is a manufacturer that uses the average cost method to account for costs production....

Highlander Corporation is a manufacturer that uses the average cost method to account for costs production. Highlander manufactures a product that is produced in three separate departmenst: Molding, Assembling, and Finshing. The following information was obtained for the assembling department for the month of June. Work in process, Jun 1 : 4,000 units composed of the following: Transferred in from the molding department Amount 60,000 percent of completion 100%, Cost added by the assembling department: Direct Materials $ 0 ,...

The Hayes Chemical company produces a chemical used in dry cleaning. Its accounting system uses standard...

The Hayes Chemical company produces a chemical used in dry cleaning. Its accounting system uses standard costs. The standard per .5-gallon can of chemical call for 1.20 gallons of material and 1.50 hours of labor. (1.20 gallons of material are needed to produce a .5-gallon can of product due to evaporation.) The standard cost per gallon of material is $6.00. The standard cost per hour for labor $9.00. Overhead is applied at the rate of $7.75 per can. Expected production...

Question