(Solution) - Saskatewan Can Company manufactures recyclable soft drink cans -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

Paper Format: APA

Pages: 5 Words: 1375

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Saskatewan Can Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. The following standards have been set by the production-engineering staff and the controller.
Direct labor: ...........Direct material:
Quantity, .25 hour......Quantity, 4 kilograms
Rate, $16 per hour......Price, $.80 per Kilogram

Actual material purchases amounted to 240,000 kilograms at $.81 per kilogram. Actual costs incurred in the production of 50,000 units were as follows:

Direct labor: ...........$211,900 for 13,000 hours
Direct material: ..........$170,100 for 210,000 kilograms

Required:
Use the variance formulas to compute the direct-material price and quantity variances and the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.