Calculation of materials and labor variances LO₃ Perez Corporation manufactures and sells a single product. The company uses a standard cost system. The standard cost per unit of product follows:

The purchasing department normally buys about the same quantity as is used in production during a month. In November, 5,200 pounds were purchased at a price of $2.90 per pound.

Required:
Calculate the following variances from standard costs for the data given, using the formulas on page 286:
1 .
Materials quantity.
2. Materials price (at time of purchase).
3. Labor efficiency.
4. Labor rate.

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Materials- lb. plastic @ $3.00..... Direct labor-1.6 hrs. @ $10.00 Factory overhead.. Total.. $ 3.00 16.00 4.45 $23.45 The charges to the manufacturing department for November, when 5,000 units were produced, follow: Materials-5,300 lbs. @$3.00. Direct labor-8,200 hrs. @$9.80 Factory overhead.. Total.. $ 15,900 80,360 23.815 $120.075