30. Materials and Labor Variances. Brier Company produces car covers. (This is the same company as the previous exercise. This exercise can be assigned independently.) For direct materials, the standard price for 1 yard of material is $5 per yard. A standard quantity of 8 yards of material is expected to be used for each car cover produced. During September, Brier Company purchased 45,000 yards of material for $238,500 and used 39,000 yards to produce 5,100 car covers. For direct labor, Brier Company established a standard number of direct labor hours at three hours per car cover. The standard rate is $16 per hour. A total of 14.700 direct labor hours were worked during September, at a cost of $238,140, to produce 5,100 car covers. Required: a. Calculate the materials price variance and materials quantity variance using the format shown in Figure 10.4. Clearly label each variance as favorable or unfavorable. b. Calculate the labor rate variance and labor efficiency variance using the format shown in Figure 10.6. Clearly label each variance as favorable or unfavorable. OWP-Tre Office Cake dit View Insert Format Styles Sheet Data Tools Window Help Abs By GEE8% 00 E 11 a aa a . = & EF MN 0 Q R P C S T D U v XERCISES (continued) 30. Materials and Labor Variances 2. As shown below, the materials price variance is As shown below, the materials quantity variance is $13,500 Unfavorable Actual Materials Costs -AQ2X AP yards per yard Actual Quantity at Standard Rate AOEX SP yards Standard Materials Costs (Flexible Budget) -SQ X SP yards per yard per yard $13,500 Unfavorable materials price variance AQESP yards per yard materials quantity variance wxk. The Office Cake dit Viewert Femal Styles Sheet Data Tools Window Help - 20 Ab 4 7 E 10 9 % 00 00 E 00 11 a aa a. E = DEF R O Q S P M T H N V XERCISES (continued) 30. Materials and Laber Variances (continued) . As shown below the labor rate variance is As shown below, the labor efficiency variance is Actual Labor Costs -AHX AR hours (59.600) Favorable Actual Hours at Standard Rate AHX SR hours per hour Standard Labor Costs (Flexible Budget SHX SR per hour hours per hour labor rate variance (59.600) Favorable Labor efficiency variance