Question - The following information pertains to the standard costs and actual activity for Tyler Company for September:
Standard costs per unit - Direct materials 4 units of material A x $2.00 per unit 1 unit of material B x $3.00 per unit
Direct labor 3 hours x $8.00 per hour
Activity for September
Materials purchased
Material A 4,500 units x $2.05 per unit
Material B 1,100 units x $3.10 per unit
Materials used
Material A 4,150 units
Material B 1,005 units
Direct Labor used 2,950 hours x $8.20 per hour
Production output 1,000 units
There were no beginning direct materials inventories.
a. Determine the materials price and quantity variances.
b. Determine the labor rate and efficiency variances.