Problem 1:-
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Standard Quantity or Hours
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Standard Price or Rate
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Direct materials
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6.8 pounds
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$ 2.90 per pound
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Direct labor
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0.2 hours
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$ 9 per hour
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During the most recent month, the following activity was recorded:
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a.
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15,100 pounds of material were purchased at a cost of $2.60 per pound.
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b.
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All of the material purchased was used to produce 2,000 units of Zoom.
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c.
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300 hours of direct labor time were recorded at a total labor cost of $3,300.
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Required:
1. Compute the materials price and quantity variances for the month.
2. Compute the labor rate and efficiency variances for the month.