Ferry Chemical Uses a Standard Cost System to Account for the Costs

question 39

Essay

Ferry Chemical uses a standard cost system to account for the costs of its production of Chemical X.Standards are 1.4 gallons of materials at $105 per gallon and 10 hours of labor at a standard wage rate of $12.During September,Ferry Chemical produced 2,600 gallons of Chemical X.Ferry Chemical purchased and used totaled 3,560 gallons at a total cost of $381,180.Payroll totaled $302,730 for 25,430 hours worked.Calculate the:
a.direct materials price variance.
b.direct materials quantity variance.
c.direct labor rate variance.
d.direct labor efficiency variance.

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Definitions:

Medication

Substances used to diagnose, treat, or prevent disease and alleviate symptoms, typically used in medical treatment.

Transactional Analysis

A psychotherapeutic theory and method exploring the interactions (transactions) between individuals based on the ego states of Parent, Adult, and Child.

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors.

Ego States

Refers to the different facets of our personality that manifest in our behaviors and interactions, such as the Parent, Adult, and Child in transactional analysis.