The following data was obtained for a company that makes statues:Standard Inputs Expected For Each Unit of Output Standard Price Per Unit of Input
- Direct material 5 pounds $12 per pound
- Direct labor 1.5 hours $12 per hour
- During the month of July, the company actually produced 1,000 statutes, which is 100 units less than
- expected. Direct material purchased and used amounted to 5,500 pounds at a cost of $12.50 per pound.
- Actual direct labor was 1,450 hours at an actual cost of $13.00 per hour.
Required:
A) Compute the price and quantity variances for direct materials.
B) Compute the price and quantity variances for direct labor.