Gemma Products Produces and Sells a Variety of Domestic Goods

question 6

Essay

Gemma Products produces and sells a variety of domestic goods including sheets.In the current year,the company budgeted for the production and sale of 10 000 sets;however,12 000 sets were actually produced and sold.Each set has a standard requiring 10 metres of material at a cost of $1.10 per metre and 20 minutes of direct labour (for sewing,assembly,and inspection)at a cost of $.20 per minute.Actual costs for the production of 12 000 sets were $138 240 for materials (128 000 metres purchased and used @ $1.08 per metre)and $55 200 for labour (230 000 minutes @ $.24 per minute).
Required: Compute each of the following variances.Indicate whether the variance is favourable (F)or unfavourable (U).
A. Direct materials price variance
B. Direct materials usage variance
Direct labour rate variance
D. Direct labour efficiency variance

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Definitions:

Anatomy Class

An educational course focused on the study of the structure of organisms and their parts.

Spatially Oriented Memory

The cognitive ability to remember the location of objects, places, and spatial relations between elements within an environment.

Meaningful Patterns

Sequences or arrangements that hold significance or can be interpreted in a specific context, often leading to insights or discoveries.

Memory Span

The amount of information a person can remember and reproduce accurately almost immediately after presentation.