Question - The data below relate to a product of Company.
Standard costs:
Material: 2 pounds at $6 per pound = $12 per unit
Labor: 3 hours at $15 per hour = $45 per unit
Budgeted production for the year is 4,000 units
Actual results were:
Production: 3,600 units
Material purchases: 8,000 pounds at $46,400
Labor: 10,360 hours at $160,580
Material used in production: 7,300 pounds
Requirements:
Compute the following:
Direct material price variance
Direct material quantity variance
Direct labor rate variance
Direct labor efficiency variance