The Data Below Relate to a Product of Bullfrog Company

question 110

Essay

The data below relate to a product of Bullfrog Company.
$\begin{array}{lrr}\text { Standard costs }\\ \text {Materials, 2 pounds at \( \$ 6 \) per pound } & \text {\$12 per unit}\\ \text { Labor, 3 hours at \( \$ 15 \) per hour } & \text {\$45per unit}\\ \text {Budgeted production for the year } & \text {4,000units}\\ \text { Actual results were:} &\\ \text { Production } & 3,600 \text {units } \\ \text { Material purchases, 8,000 pounds} &\$46,400\\ \text { Labor, 10,360 hours } &\$160,580\\ \text {Material used in production } & 7,300 \text { pounds }\\\end{array}$


Required:
(Be sure to indicate whether the variance is favorable or unfavorable.)
a. Compute the direct material price variance.
b. Compute the direct material efficiency variance.
c. Compute the direct labor rate variance.
d. Compute the direct labor efficiency variance.

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Definitions:

Soviet Union

A socialist state that spanned much of Europe and Asia from 1922 until its dissolution in 1991.

Emergency Banking Act

A law passed in 1933 during the Great Depression that aimed to stabilize the banking sector, restore public confidence, and prevent the failure of banks.

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The ceremony marking the beginning of Franklin D. Roosevelt's presidency, notable for his speech declaring the only thing to fear is "fear itself" during the Great Depression.

Gold Standard

A monetary system where a country's currency or paper money has a value directly linked to gold, ensuring stable prices and exchange rates.