Q1) The following direct materials and labor data pertain to operations of Solario Manufacturing Company for month of August.
| Costs |
| Actual labor rate |
$13 per hour |
| Actual material price |
$128 per ton |
| Standard labor rate |
$12 per hour |
| Actual material price |
$130 per ton |
| Quantities |
| Actual hours incurred and used |
4,200 hours |
| Actual quantity of materials purchases and used |
1,225 tons |
| Standard hours used |
4,300 hours |
| Standard quantity of materials used |
1,200 tons |
Question:
Give two possible description for each of unfavorable variances (a), and recommend where responsibility for unfavorable result might be placed.