Materials and labor variances. Kirkwood Company's budget contains these standards for materials and direct labor for a unit:

Although the firm budgeted 100,000 units of output for September, it produced only 97,810. It purchased and used 200,000 pounds of materials for $105,500. Direct labor costs were $905,000 for 99,200 hours.

a. Compute the materials variance.

b. Compute the labor variance.

Transcribed Image Text:

Material-2 Pounds at $.50 per Pound Direct Labor-1 Hour at $9.00 $1.00 9.00