Problem - Gandolph Game Company
Gandolph Game Company has established the following standards for the prime costs of one unit of its chief product, dartboards.
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Standard Cost
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Standard Quantity
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Standard Rate or Price
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|
Direct Material
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14
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8kg
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$1.75 per kilogram
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|
Direct Labor
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2
|
.25hr
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$8 per hour
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During September, Gandolph purchased 320,000 kg of DM at a total cost of $608,000. The total wages for September were $84,000, 90% of which were for DL. Gandolph manufactured 38,000 dartboards during September, using 285,000 kg of DM and 10,000 DL hours.
Compute the following:
Material variances
Labor variances