Jackson Industries uses a standard cost system in which direct materials inventory is carried at standard cost. Jackson has established the following standards for one unit of product. Standard Quantity Standard Price or Rate Standard Cost Direct materials 5 pounds $3.60 per pound $18.00 Direct labor 1.25 hours $12.00 per hour $15.00 During May, Jackson purchased 125,000 pounds of direct material at a total cost of $475,000. The total factory wages for May were $344,400. Jackson manufactured 22,000 units of product during May using 108,000 pounds of direct material and 28,000 direct labor-hours.
The price variance for the direct material acquired by Jackson Industries during May is:
a. $21,600 Favorable
b. $25,000 Unfavorable
c. $28,000 Favorable
d. $21,600 Unfavorable
The materials quantity variance for May is:
a. $7,200 Unfavorable
b. $7,600 Favorable
c. $5,850 Unfavorable
d. $7,200 Favorable
The labor rate variance for May is:
a. $8,400 Favorable
b. $7,200 Unfavorable
c. $8,400 Unfavorable
d. $6,000 Favorable
The labor efficiency variance for May is:
a. $5,850 Favorable
b. $7,200 Favorable
c. $6,000 Unfavorable
d. $5,850 Unfavorable

Instructions are below.

Explanation:

Giving the following information:

Direct materials:

Standard Quantity= 5 pounds

Standard Price= $3.60 per pound

Direct labor:

Standard Quantity=1.25 hours

Standard Price= $12.00 per hour

During May:

Purchased= 125,000 pounds of direct material for $475,000.

The total factory wages for May were $344,400.

Jackson manufactured 22,000 units of product during May using 108,000 pounds of direct material and 28,000 direct labor-hours.

To calculate the direct material quantity and price variance, we need to use the following formulas:

Direct material price variance= (standard price - actual price)*actual quantity

Actual price= 475,000/125,000= $3.8 per pound

Direct material price variance= (3.6 - 3.8)*125,000= $25,000 unfavorable

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Standard quantity= 22,000*5= 110,000 pounds

Direct material quantity variance= (110,000 - 108,000)*3.6

Direct material quantity variance= $7,200 favorable

To calculate the direct labor rate and quantity variance, we need to use the following formulas:

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Actual rate= 344,400/28,000= $12.3

Direct labor rate variance= (12 - 12.3)*28,000= $8,400 unfavorable

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

Standard quantity= 22,000*1.25= 27,500 hours

Direct labor time (efficiency) variance= (27,500 - 28,000)*12

Direct labor time (efficiency) variance= $6,000 unfavorable

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%