Amber Company produces iron table and chair sets. During October, Ambers costs were as follows:

Actual purchase price

$ 3.20

per lb.

Actual direct labor rate

$ 8.40

per hour

Standard purchase price

$ 3.00

per lb.

Standard quantity for sets produced

1,060,000

lbs.

Standard direct labor hours allowed

21,000

Actual quantity purchased in October

1,365,000

lbs.

Actual direct labor hours

19,000

Actual quantity used in October

1,090,000

lbs.

Direct labor rate variance

$6,400

F

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Required: 1. Calculate the total cost of purchases for October.

Total Purchases=

2. Compute the direct materials price variance based on quantity purchased. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.)

Direct Materials Price Variance

3. Calculate the direct materials quantity variance based on quantity used. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.)

	Material Quantity Variance

4. Compute the standard direct labor rate for October. (Round your answer to 2 decimal places.)

Standard Direct Labor Rate

5. Compute the direct labor efficiency variance for October. (Round your intermediate calculation to 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.)

	Direct Labor Efficiency Variance