The given information explains production activities of Truzor Manufacturing for the year:
Actual raw materials used 38,000 lbs. at $5.70 per lb.
Actual factory payroll 6,000 hours for a total of $96,000
Actual units produced 30,000
Budgeted standards for each and every unit produced are 1.00 pounds of raw material at $5.80 per pound and 10.0 minutes of direct labor at $15.50 per hour.
Required:
a) Calculate the direct materials price and quantity variances.
b) Calculate the direct labor rate and efficiency variances.