Ferry Chemical Uses a Standard Cost System to Account for the Costs

Essay

Ferry Chemical uses a standard cost system to account for the costs of its production of Chemical X.Standards are 1.4 gallons of materials at $105 per gallon and 10 hours of labor at a standard wage rate of $12.During September,Ferry Chemical produced 2,600 gallons of Chemical X.Ferry Chemical purchased and used totaled 3,560 gallons at a total cost of $381,180.Payroll totaled $302,730 for 25,430 hours worked.Calculate the:
a.direct materials price variance.
b.direct materials quantity variance.
c.direct labor rate variance.
d.direct labor efficiency variance.