1. Your Company produces Widgets. During the year 210,000 widgets were produced. Materials and labor standards for producing the widgets are as follows: Direct materials (2 pieces of wood @$2.75 each) Direct labor (1.5 hours@$10.10 per hour) You purchased and used 430,000 pieces of wood at $2.10 each and its actual labor hours were 310,000 hours at a wage rate of $10.50 What are the materials variances? Using the columnar approach described in the textbook fil in the table below for the various material variances. Label each cell in the table and include favorable or unfavorable with your numeric answers in the appropriate cell Chapter 10 Standard Costing and Variance Analysis differen ce between the actual and standard unit price of an input multiplied by the number the of inputs used Price Variance (AP -SP) x AQ nderence berween the actual and standard quantity of inputs multiplied by the standard unit he usage e(quantity) variance is called an efficiency variance. Usage (efficiency) variance is the rice of the input: Usage Variance (4Q-SQ) x SP 1. AP X AO (Actual Price for Actual Quantity of Input) 2, SP AQ (Standard Price for Actual Quantity of Input) (Standard Price for Standard Quantity of Input) Exhibit 10.4 Variance Analysis: General Description Price Variance Usage Variance (2 3) Total Variance (1 3) Price Variance. (AP x AQ)-(SP x AQ)-(AP-SP) x Aa "Usage Variance - (SPx AQ) (SPx SO) -(AQ SQ) x SP Total Variance - (AP x AQ) - (SPx Sa) Unfavorable (U) variances occur whenever actual prices or actual usage of inputs are great- er than standard prices or standard usage. When the opposite occurs, favorable (F) variances are obtained. Favorable and unfavorable variances are not equivalent to good and bad variances. e terms merely indicate the relationship of the actual prices (or quantities) to the standard prices (or quantities). Whether or not the variances are good or bad depends on why they oc- curred. Determining the cause of a variance requires managers to do some investigation. 9. (15 points) Refer to problem 8. What are the labor variances? Using the columnar approach described in the textbook fill in the table below for the various labor variances. Label each cell in the table and include favorable or unfavorable with your numeric answers in the appropriate cel