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ABC Company manufactures a variety of circuit boards. The standard costs for one of its products are as follows: Direct material 6.0 pounds @ $
ABC Company manufactures a variety of circuit boards. The standard costs for one of its products are as follows: Direct material 6.0 pounds @ $ Direct labor 2.2 hours @ $ 4.80 per pound 13.50 per hour Actual results for the year are given below: Finished units Direct labor Direct material purchased Direct material used 210,000 units 435,000 hours @ 1,116,000 pounds @ 1,110,000 pounds $ $ 13.20 per hour 5.10 per pound Required: Calculate the following variances and state if they are favorable or unfavorable. a) b) c) Direct material price variance Direct material usage variance Direct labor rate variance d) Direct labor efficiency variance
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