Evaluation of Four Plants. Bethel Motors, Inc. produces an automotive product at four plants: Hill, Valley, Ridge, and River. Standard materials and labor costs per unit of product are the same at all plants and are as follows:

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1. Compute the materials usage variance for each month for each plant 2. Compute the labor efficiency variance for each month for each plant.
3. If the market weakens, which plant is most likely to be closed down? Explain.

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Direct materials per product unit: Metal sheets (5 units at $2). Purchased part (3 units at $1) Standard materials costs $ 10 3 $13 Direct labor per product unit: .5 hour at $10..... 5 Standard materials and labor cost. $ 18 Actual production data for each of the four plants for June, July, and August are as follows: Plants Hill Valley Ridge River June: Units produced... 80,000 50,000 60,000 100,000 Units of materials used: Metal sheets.. 402,000 252,000 335,000 510,000 Purchased part 241,000 151,000 215,000 305,000 Labor hours... 42,000 27,000 40,000 49,000 July: Units produced. 95,000 40,000 70,000 110,000 Units of materials used: Metal sheets... 480,000 212,000 375,000 550,000 Purchased part 275,000 122,000 225,000 335,000 Labor hours.. 48,000 21,000 42,000 53,000