1) The standard cost of product 777 includes 2.40 units of direct materials at $5.00 per unit. During August, the company bought 28,700 units of materials at $5.09 and used those materials to produce 12,300 units.
Compute the total, price, and quantity variances for materials.
2) The standard cost of product 5252 includes 2.90 hours of direct labor at $14.00 per hour. The predetermined overhead rate is $22.00 per direct labor hour. During July, the company incurred 4,400 hours of direct labor at an average rate of $14.17 per hour and $80,800 of manufacturing overhead costs. It produced 1,500 units.
(a) Compute the total, price, and quantity variances for labor.
| Total labor variance |
|
$ |
|
Neither favorable nor unfavorableUnfavorableFavorable |
| Labor price variance |
|
$ |
|
FavorableNeither favorable nor unfavorableUnfavorable |
| Labor quantity variance |
|
$ |
|
Neither favorable nor unfavorableFavorableUnfavorable |
(b) Compute the total overhead variance.
| Total overhead variance |
|
$ |
|
Neither favorable nor unfavorableUnfavorableFavorabl |