Angelo Company produces a hand disinfecting and sanitizing compound known as Defensil. The direct materials and direct labor standards for one unit of Defensil are given below: Standard Quantity or Hours Standard Price or Rate Direct materials 4.6 pounds $2.5 per pound

Direct labor 0.2 hours $12 per hour

During the most recent month, the following activity was recorded: a. Twenty thousand pounds of material were purchased at a cost of $2.35 per pound.

b. All of the material purchased was used to produce 4,000 units of Defensil.

c. 750 hours of direct labor time were recorded at a total labor cost of 10,425. Compute:

1. Materials price variance

2. Materials quantity variance

3. Labor rate variance

4. Labor efficiency variance

5. Refer to data above and assume that instead of producing 4,000 units during the month, the company produced only 3,000 units, using 14,750 of materials (the rest of the material purchased remained in raw materials inventory.) Compute the materials price variance.

6. Refer to data above and assume that instead of producing 4,000 units during the month, the company produced only 3,000 units, using 14,750 of materials (the rest of the material purchased remained in raw materials inventory.) Compute the materials quantity variance.