ABC developed the following standard costs for direct material and direct labor for one of their major projects;
|
Standard Quantity
|
Standard Price
|
|
Direct Materials
|
10 kilograms
|
$5 per kilogram
|
|
Direct Labor
|
0.5 hours
|
$30 per hour
|
During 2015, the company produced and sold 100,000 units using 990,000 kilograms of direct materials at an average cost of $4.95 per kilogram, and total direct labor costs of $1,428,000 (51,000 DLH's incurred)
Question: Calculate the 2015 price and quantity (efficiency) variances, and total variances, for direct material and direct labor. Show calculations.