Material and Labor Variances
Consider the following data:
Costs incurred: actual inputs x actual prices incurred Direct Materials $154,000 Direct Labor $77,800
Actual inputs x expected prices Direct Materials $170,000 Direct Labor $74,000
Standard inputs allowed for actual outputs achieved x expected prices
Direct Materials $172,500 Direct Labor $ 71,300
Compute the price, quantity, and flexible-budget variances for direct materials and direct labor. Use U or F to indicate whether the variances are unfavorable or favorable.