Actual Price = $8.50 per unit

Standard Price = $8 per unit

Actual Quantity = 2000 units

Standard Quantity = 1900 units

1) Based on the above data, compute the materials price variance. Is it favorable ? Why ?

2) Based on the above data, compute the materials quantity variance. Is it favorable ? Why ?

3) Assuming an actual quantity of 1000 hours, an actual pay rate of $10.20 per hour, and a standard pay rate of $10 per hour, compute the labor rate variance. Is it favorable ? Why ?