1. We produce wood tables. The standard costs are as follows per table:
Wood - 20.5 linear feet at a cost of $13.15 per foot
Labor - 18 hours at a labor rate of $40 per hour
In May we produced 48 tables. The 48 tables used 950 linear feet of wood at a total cost of $12,875. The total labor hours in May were 1,100 hours at a total labor cost of $39,600.
- What are the material price variance and the material quantity variance?
- What are the labor efficiency variance and labor rate variance?