7. Dillard Company has developed the following standard cost data.

	Per Unit
Direct materials (3 lbs. @ $2.00/lb.) Direct labor (0.5 hrs. @ $8.00/hr.)	$ 6.00 4.00

During a recent period, the company produced 128,000 units. It incurred the following manufacturing costs:

Direct materials Direct labor

Purchased 390,000 lbs. @ $2.05/lb.; used 380,000 lbs. Used 63,000 hours at a cost of $507,150

a. Materials price variance. (show your calculations)

b. Materials inventory variance. (show your calculations)

c. Materials usage variance. (show your calculations)

d. Determine the direct labor rate and efficiency variances. Be sure to label each variance to show which one is which.