Actual results:

Direct labor 180 hours @ $12 per hour = $2,160 total paid

Direct materials purchased 250 pounds @ $2.30 per pound = $575 total credit purchases

Direct materials used 125 pounds

Actual production 75 units

Standard/budgeted data:

Direct materials 3 pounds per unit @ $2.10 per pound = $6.30 per unit

Direct labor 2 hours per unit @ $11 per hour = $22 per unit

Practical capacity 100 units (static/master budget)

Type each letter (a through e) and show supporting work.

a. Calculate the direct materials purchase price variance. Indicate if favorable (F) or unfavorable (U).

b. Calculate the direct materials usage variance. Indicate if favorable (F) or unfavorable (U).

c. Calculate the direct labor rate variance. Indicate if favorable (F) or unfavorable (U).

d. Calculate the direct labor efficiency variance. Indicate if favorable (F) or unfavorable (U.)

e. Give the entries for direct materials and direct labor. Label each account in each entry with debit (dr) or credit (cr)