Calculation of materials and labor variances}

Louvre Corporation manufactures and sells a single product. The company uses a standard cost system. The standard cost per unit of product follows:

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Materials: 1 lb. plastic @ $3.00/lb. Direct labor: 1.6 hrs. @$10.00/hr. 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/lb. Direct labor: 8,200 hrs. $9.80/hr. Factory overhead Total $ 15,900 80,360 23,815 $120,075 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: For the data given, calculate the following variances from standard costs using the formulas on page 335: 1. materials quantity; 2. materials price (at time of purchase); 3. labor efficiency; 4. labor rate.