Question - Ransom Inc. manufactures Product X. The purchasing and production departments have provided the following information related to Product X for the month of March:
Standard (Budgeted) Actual
Direct materials: 1,500 pounds at $35.00/lb. 1,600 pounds at $32.00/lb.
Direct labor: 4,800 hours at $11.00/hr. 4,500 hours at $11.80/hr.
Compute the following for Ransom (number and term):
Total direct materials cost variance:
Direct labor rate variance:
Direct materials quantity variance: