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25 Cool Pool is a business that installs swimming pools in peoples houses. They calculate their standard quantity of material as follows: Direct material 975
25 Cool Pool is a business that installs swimming pools in peoples houses. They calculate their standard quantity of material as follows: Direct material 975 cubic feet per pool Material wasted and spoiled cubic feet per pool Standard quantity of material 1,000 cubic feet per pool They estimate to spend this much in material: Purchase price: $1.90 per cubic foot Delivery cost: $0.10 per cubit foot Standard cost of material $2.00 per cubit foot In terms of labor, HR department determined 400 DL hours per pool with the following standards as well: Wage rate per hour: Other benefits: Standard DL Rate $8.00 per DLH $2.50 per DLH 10.50 per DLH Suppose Cool Pool installed 10 pools in the month of May 2022 and that actual expenses were: Direct materials 7,400 cubic feet , at $2.00 per cubic foot Direct labor 2,740 hours, at $10.00 per hour Variable overhead $5,400 Fixed Overhead $11,900 Using this information, calculate price and efficiency variances for direct materials and direct labor
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