The following information is available:
- Actual Inputs for Actual Price
- Each Unit of Output Per Unit of Input
- Direct materials 11 yards $12 per yard
- Direct labor 4.2 hours $8 per hour
Actual output was 1,000 units. The company's per unit standards call for 15 yards of direct material at $10.00 per yard and 4 hours of direct labor at $9.50 per hour. The company purchased and used 11,000 yards of material.
Required:
A) Compute the price and quantity variances for direct material.
B) Compute the price and quantity variances for direct labor