Reference no: EM13505265

Barberry inc manufacture a product call fruta this companyuse a standard cost system and has establish the data base for one unt of fruta

direct material=1.5 pound

-standard price of rate=6.00 per pound

-standard cost=9.00

direct labor=0.6 hrs

standard price rate=12.00 per hr standard cost=7.20

variable overhead=0.6hr

standard price of rate=2.50hr

standard cost=1.50

during june this company record activity relate to production of fruta

1.this company produce 3000 unit during june

a total of 8000 pound of material were purchase at a cost of 46k there were no beginning inventory of material how ever at the end of month 2000 pound of material remain in ending inventory the company have 10 staff to work on the production of fruta.during june they work a vegrafe of 160hrs at a rate of 12.50hr variable overhead is assign to fruta on the basis of direct labor hr'variable overhead cost during junne total 3,600.question- this company management is anxious to determine the efficiency of fruta production activities

Prepare direct material. compute the price and quantity variance the material were purchase from a new supplier who wants to enter into a long term purchase contract.

Question for labor staff in the productin of fruta

Compute the rate and efficiency variance

Compute the variable overhead and efficiency variances what relations can u see between this efficiency and the labor efficiency varience