Rayvo Company Has the Following Information Required:
A

Essay

Rayvo Company has the following information: $$\begin{array} { l l l l } \text { Direct Materials: } & & \text { Direct Labour: } \\\text { Standard Quantity } & 100,000 & \text { Standard Hours } & 1,000 \\\text { Actual Quantity } & 99,500 & \text { Actual Hours } & 1,050 \\\text { Standard Price } & \$ 5 & \text { Standard Rate } & \$ 12 \\\text { Actual Price } & \$ 4 & \text { Actaal Rate } & \$ 13\end{array}$$ Required:
A. Determine the materials price variance and whether it is favourable or unfavourable.
B. Determine the materials usage variance and whether it is favourable or unfavourable.
C. Determine the labour rate variance and whether it is favourable or unfavourable.
D. Determine the labour efficiency variance and whether it is favourable or unfavourable.
E. Provide the journal entries to record the purchase of materials, the issuance and usage of materials, and direct labour variances.
F. Provide the closing entries for the immaterial variances.