Sparing Manufacturing has developed the following standards for one of its products
STANDARD VARIABLE COST CARD (one unit of product)
Materials: 5yrds x $6 per yrd = $30.00, DL: 2hrs x $8 per hour= $16.00, Variable manufacturing overhead: 2hrs x $5 per hour= $10.00, Total standard variable cost per unit =$56.00
The company records materials price variance at the time of purchase
The following activity occurred during the month of December:
Materials purchased: 5,200 costing $29,900, Material used: 4,750 yrds, Units produced 1,000 units, DL 2,100 hours costing $17,850
1) Calculate the direct material price variance
2) Calculate the direct material usage variance
3) Calculate the direct labor rate variance
4) Calculate the direct labor efficiency variance