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Orion Corporation has established the following standards for the prime costs of one unit of its...

Orion Corporation has established the following standards for the prime costs of one unit of its chief product, dartboards.

Standard Quantity Standard Price or Rate Standard Cost
Direct material 12.00 pounds $ 2.80 per pound $ 33.60
Direct labor 2.00 hour $ 4.00 per hour 8.00
Total $ 41.60

During June, Orion purchased 256,000 pounds of direct material at a total cost of $760,320. The total wages for June were $183,084, 75 percent of which were for direct labor. Orion manufactured 19,000 dartboards during June, using 220,400 pounds of the direct material purchased in June and 41,610 direct-labor hours.

Required:

Compute the following variances for June.(Do not round intermediate calculations. Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).)

1. Direct-material price variance $ Favorable or Unfavorable
2. Direct-material quantity variance
3. Direct-material purchase price variance
4. Direct-labor rate variance
5. Direct-labor efficiency variance

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ekkarill92 answered 1 year ago
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