Each unit of job Y703 has standard requirements of 5 pounds of raw material at a price
Question:
Each unit of job Y703 has standard requirements of 5 pounds of raw material at a price of \(\$ 100\) per pound and 0.5 hour of direct labor at \(\$ 12\) per hour. To produce 9,000 units of this product, job Y703 actually required 40,000 pounds of the raw material costing \(\$ 97\) per pound. The job used a total of 5,000 direct labor hours costing a total of \(\$ 60,000\).
Required
a. Determine the material price and material quantity variances for job Y703.
b. Assume that the materials used on this job were purchased from a new supplier. Would you recommend continuing with this new supplier? Why or why not?
c. Determine the direct labor rate and direct labor efficiency variances.
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