The following information is available for Mandalay Company:

Required

a. Determine the material price variance and material quantity variance.

b. Determine the direct labor rate variance and direct labor efficiency variance.

Transcribed Image Text:

Actual Materials: Direct labor: Units produced: Standard Materials: Direct labor: 12,000 pounds purchased at $2.50 per pound; used 10,500 pounds 1,800 hours at $12 per hour 500 20 pounds per unit at a price of $2.20 per pound 4 hours per unit at a wage rate of $10 per hour