Pizzeria Paradise has established the following dough and labor standards for making one 14” pizza:

Dough .... ½ pound at $2 per pound

Labor ... ¼ hour at $8 per hour

For the most recent month (June), the actual dough and labor costs incurred in making 12,000 pizzas were as follows:

Dough .... 6,800 pounds purchased and used $1.90 per pound

Labor ... 3,200 hours at a total cost of $26,400

Required:

a. What are the dough price and quantity variances for June?

b. What are the labor price and quantity variances for June?

c. What factors might explain the dough and labor variances you calculated in parts (a) and (b)?