Materials and labor variances} Fort Wayne Fabricators, Inc., uses a standard cost system to account for its

Question:

Materials and labor variances}

Fort Wayne Fabricators, Inc., uses a standard cost system to account for its single product. The standards established for the product include the following: image text in transcribed

In process, beginning inventory, none.
In process, ending inventory, 800 units, $80 \%$ complete as to labor; material is issued at the beginning of processing.
Completed during the month, 5,600 units.
Materials issued to production were 51,680 pounds @ $\$ 0.045$ per pound.
Direct labor was $\$ 215,840$ at the rate of $\$ 5.68$ per hour.
{Required:}
Calculate the following variances using the diagram format in Figure 8-4:
1. materials price;
2. materials quantity;
3. net materials variance;
4. labor rate;
5. labor efficiency;
6. net labor variance.