Direct Materials and Direct Labor Variances
At the beginning of June, Cornerstone Printing Company budgeted 15,000 books to be printed in June at standard direct materials and direct labor costs as follows:
| Direct materials |
$18,000 |
| Direct labor |
15,600 |
| Total |
$33,600
|
The standard materials price is $0.40 per pound. The standard direct labor rate is $13.00 per hour. At the end of June, the actual direct materials and direct labor costs were as follows:
| Actual direct materials |
$17,300 |
| Actual direct labor |
15,000 |
| Total |
$32,300
|
There were no direct materials price or direct labor rate variances for June. In addition, assume no changes in the direct materials inventory balances in June. Cornerstone Printing Company actually produced 14,000 units during June.
Determine the direct materials quantity and direct labor time variances. Use the minus sign to enter favorable variances as negative numbers.