Dog's Best Friend manufactures dog food. During the month, it manufactured 3,000 bags of kibble, using 0.25 hour of direct labor per bag at a rate of $9.00 per hour. The materials and labor standards for manufacturing the bags of kibble are: The company actually used 3,300 pounds of beef at a price of $1.10 per pound. It also purchased 3,000 bags at a price of $0.15 per bag. Required: If your answer is zero, then select "Neither favorable nor unfavorable" from dropdown box.
A. Determine the total materials price variance and whether it is favorable or unfavorable.
B. Determine the labor efficiency variance and whether it is favorable or unfavorable.