Question - Volmer Company has set the following standards for one unit of product:
Direct material quantity: 4.7 pounds per unit
Price per pound: $9 per pound
Direct labor quantity: 3 hours per unit
Rate per hour: $21 per hour
Actual costs incurred in the production of 2,000 units were as follows:
Direct material: $89,280 ($9.30 per pound)
Direct labor: $118,900 ($20.50 per hour)
All materials purchased were consumed during the period
Calculate the four variances (material and labor).