Question - Barker Company produces a single product. The standard direct costs for the product are as follows:
Direct materials (4 yds.@ $5/yd.) $20
Direct labor (1.5 hrs.@ $10/hr.) $15
During a recent period the company produced 1,200 units of product. Various costs associated with the production of these units are given below:
Direct materials purchased (5,000 yds.) $24,500.
Direct materials used in production 4,700 yds.
Direct labor cost incurred (1,900 hours) $18,297
1. What is the materials price variance for the period?
2. The materials quantity (or usage) variance for the period is?
3. The labor rate variance for the period is?
4. The labor efficiency variance for the period is?