1)The standards for a product call for 2.5 pounds of a raw material that costs $6.10 per pound. Last month, 30,000 pounds of the raw material were purchased for $187,500. The actual output of the month was 9,000 units of the product. A total of 22,200 pounds of the raw material were used to produce this output.

Required:

a. What is the materials price variance for the month?

b. What is the materials quantity variance for the month?

2)The following labor standards have been established for a product:

Standard hours per unit1.7 hours

Standard labor rate$11.50 per hour.

By the end of the period 37,300 units of product had been produced.To produce this output 65,000 hours had been worked at an actual cost of $780,000.

Required:

a. What is the labor rate variance for the month?

b. What is the labor efficiency variance for the month?