(Material and labor variances) Savannah Boat Company uses a standard cost sys¬ tem for materials and labor in producing fishing boats. Production requires three materials: fiberglass, paint, and a prepurchased trim package. The standard costs and quantities for materials and labor are as follows:

Calculate the material and labor variances for Savannah Boat Company for July 1996. Base the material price variance on the quantity of material purchased.LO1

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STANDARDS FOR 1 FISHING BOAT 1,200 pounds of fiberglass @ $.80 per pound 2 quarts gel coat paint @ $60.00 per gallon 1 trim package 40 hours of labor @ $12.00 per hour Prime standard cost $ 960 30 165 480 $1,635 During July 1996, the company had the following actual data related to the production of 100 boats: MATERIAL PURCHASED: Fiberglass 130,000 pounds @ $.79 per pound Paint 60 gallons @ $55.50 per gallon Trim packages-100 @ $175 per package MATERIAL USED: Fiberglass 125,000 pounds Paint-54 gallons Trim packages-105 DIRECT LABOR USED: 4,250 hours @ $11.50 per hour