Reference no: EM132759200

Question - Orion Corporation has established the following standards for the prime costs of one unit of its chief product, dartboards.

Standard Quantity Standard Price or Rate Standard Cost

Direct material 8.00 pounds $1.75 per pound $14.00

Direct labor 0.25 hour $8.00 per hour 2.00

Total 16.00

During June, Orion purchased 160,000 pounds of direct material at a total cost of $304,000. The total wages for June were $42,000, 90 percent of which were for direct labor. Orion manufactured 19,000 dartboards during June, using 142,500 pounds of the direct material purchased in June and 5,000 direct-labor hours.

Required - Compute the following variances for June.

i. Direct material price variance

ii. Direct material quantative variance

iii. Direct material purchase price variance

iv. Direct labor rate variance

v. Direct labor efficiency variance