Fremont,Inc

Essay

Fremont,Inc. ,builds storage boxes to custom order.Materials include 20 board feet of lumber at $1.25/board foot.Standards call for 2 hours of labor at $15/hr.During March,4,200 boxes were built.Materials purchased totaled $103,890 for 86,300 board feet of lumber.Actual lumber usage in production was 82,310 board feet.The March payroll was $139,360 for 9,150 hours.Required:
(Be sure to indicate whether the variance is favorable or unfavorable. )
a.Compute the direct material price variance.b.Compute the direct material quantity variance.c.Compute the direct labor rate variance.d.Compute the direct labor efficiency variance.