Chen Enterprises Purchased 67,000 Pounds (Cost = $616,400) of Direct

question 72

Essay

Chen Enterprises purchased 67,000 pounds (cost = $616,400) of direct material to be used in the manufacture of the company's sole product. According the production specifications, each completed unit requires four pounds of direct material at a standard cost of $9 per pound. Direct materials consumed by the end of the period totalled 65,500 pounds in the manufacture of 16,050 finished units.
An examination of Chen's payroll records revealed that the company worked 42,000 labour hours (cost = $621,600) during the period, and specifications called for each completed unit requiring 2.6 hours of labour at a standard cost of $15 per hour:
Required:
Calculate the direct-material price and quantity variances, and the direct-labour rate and efficiency variances. Indicate whether each variance is favourable or unfavourable.

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Definitions:

Health Maintenance

The practice of adopting lifestyle and medical strategies to prevent disease, prolong life, and promote physical and mental well-being.

Chronic Health Problems

Long-standing, persistent health conditions that manage rather than cured, often requiring ongoing treatment and management.

Health Status

The overall condition of an individual's health, taking into account various factors such as diseases, fitness level, and mental well-being.

Collaborative Problems

Health issues that require both the patient and healthcare professionals to work together to solve or manage.