Q:
In July, 2010, Zinger Corp, purchased 20,000 gallons of Numerol for $61,000 to use in the production of product 43MR7. In July, Zinger Corp. manufactured 3,900 units of product 43MR7. The subsequent information is available about standard and actual quantities and costs:
Standard for on One unit Actual usage for July
Direct material 4.8 gallons @$ 3 per gallon 18,350 gallons
Direct labor 20 minutes @$ 9 per DLH 1,290 DLHs @$ 9.02 per DLH
a. Evaluate the material purchase price variance and the material quantity variance.
b. Evaluate the labor rate, labor efficiency, and total labor variance.