Explain the steps on how to solve the problem below:
Haslett Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product.
Direct materials (8 pounds at $2.50 per pound) ................$20
Direct labor (3 hours at $12.00 per hour) ........................$36
During the month of April, the company manufactures 230 units and incurs the following actual costs.
Direct materials purchased and used (1,900 pounds) ..........$4,940
Direct labor (700 hours) ............................................$8,120
Instructions
Compute the total, price, and quantity variances for materials and labor.