During April, Dryden Company's material purchases amounted to 6,500 pounds at a price of \($7.40\) per pound. Actual costs incurred in the production of 2,000 units were as follows:

The standards for one unit of Dryden Company's product are as follows:

Required: 

Compute the direct-material price and quantity variances and the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.

Transcribed Image Text:

Direct labor: Direct material: $118,035 ($18.30 per hour) $31,820 ($7.40 per pound)