Direct Materials and Direct Labor Variances
At the beginning of August, Cornerstone Printers Company budgeted 26,000 books to be printed in August at standard direct materials and direct labor costs as follows:
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Direct materials
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$41,600
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Direct labor
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17,160
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Total
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$58,760
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The standard materials price is $0.40 per pound. The standard direct labor rate is $11.00 per hour. At the end of August, the actual direct materials and direct labor costs were as follows:
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Actual direct materials
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$37,200
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Actual direct labor
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15,400
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Total
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$52,600
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There were no direct materials price or direct labor rate variances for August. In addition, assume there were no changes in the direct materials inventory balances in August. Cornerstone Printers Company actually produced 22,600 units during August.
Determine the direct materials quantity variance, direct labor time variance, and the total variance. Enter a favorable variance as a negative amount, and an unfavorable variance as a positive amount.
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Direct materials quantity variance
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$______
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Select Favorable Unfavorable Item 2
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Direct labor time variance
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_______
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Select Favorable Unfavorable Item 4
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Total variance
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$_______
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Select Favorable Unfavorable Item 6
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