Dawson Corporation Has the Following Information A Determine the Materials Price Variance and Whether It Is

question 134

Essay

Dawson Corporation has the following information:
$\begin{array} { l r l r }\text { Direct Materials: } &&\text { Direct Labour: }\\ \text { Standard Quantity } & 2,500 & \text { Standard Hours } & 600 \\ \text { Actual Quantity } & 2,400 & \text { Actual Hours } & 625 \\ \text { Standard Price } & \$ 22 & \text { Standard Rate } & \$ 15 \\ \text { Actual Price } & \$ 20 & \text { Actual Rate } & \$ 15 \end{array}$ A. Determine the materials price variance and whether it is favourable or unfavourable.
B. Determine the materials usage variance and whether it is favourable or unfavourable.
C. Determine the labour rate variance and whether it is favourable or unfavourable.
D. Determine the labour efficiency variance and whether it is favourable or unfavourable.

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Definitions:

Concentrated Costs

Expenses that are not spread out but are borne largely by a small group.

Widespread Costs

involve expenses that affect a large segment of the economy, often implying that these costs are distributed across many individuals or entities.

Private-sector Provision

Services or goods provided by businesses owned by individuals or shareholders, rather than by the government.

Public-sector Provision

Involves services and goods provided by the government or public entities to ensure welfare and infrastructure availability to the public.