Orion Corporation has established the following standards for the prime costs of one unit of...
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Orion Corporation has established the following standards for the prime costs of one unit of its chief product, dartboards. Direct material Direct labor Total Standard Quantity 7.00 pounds 1.50 hour Standard Price or Rate $2.30 per pound $5.00 per hour Standard Cost $16.10 7.50 $23.60 During June, Orion purchased 191,000 pounds of direct material at a total cost of $462,220. The total wages for June were $224,352, 75 percent of which were for direct labor. Orion manufactured 24,000 dartboards during June, using 151,200 pounds of the direct material purchased in June and 39,360 direct-labor hours. Required: Compute the following variances for June. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance).) 1. Direct-material price variance 2. Direct-material quantity variance 3. Direct-material purchase price variance 4. Direct-labor rate variance 5. Direct-labor efficiency variance
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