Variance analysis, material, and labor 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 9000 units of this prod¬ uct, job Y703 actually required 40,000 pounds of the raw material costing

$97 per pound. The job used a total of 5000 direct labor hours costing a total of $60,000. 6

(a) Determine the material price and use variances.

(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? 7

(c) Determine the direct labor rate and efficiency variances

(LO 1)