Quinton Company Has Set the Following Standards for One Unit

question 36

Essay

Quinton Company has set the following standards for one unit of product:
Direct material
Quantity: 6.2 pounds per unit
Price per pound: $11 per pound
Direct labor
Quantity: 6 hours per unit
Rate per hour: $23 per hour
Actual costs incurred in the production of 2,800 units were as follows:
Direct material: $194,350 ($11.50 per pound)
Direct labor: $393,750 ($22.50 per hour)
All materials purchased were consumed during the period.
Required:
Calculate the direct-material price and quantity variances, and the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.

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Definitions:

Investing Activities

Operations related to buying and selling long-term assets and investments, excluding those considered as cash equivalents.

Financial Analysts

Professionals who evaluate investments, economic trends, and financial statements to help businesses and individuals make informed financial decisions.

Financing Activities

Transactions and events that affect the long-term liabilities and equity of a firm, as reported in the cash flow statement.

Accounts Receivable

Funds that customers owe to a business for products or services that have been provided but for which payment has not yet been received.