Assume that Schmidt Machinery Company had the standard costs reflected in Exhibit 14.5. In a given month, the company used 3,450 pounds of aluminum to manufacture 920 units. The company paid $28.50 per pound during the month to purchase aluminum. At the beginning of the month, the company had 50 pounds of aluminum on hand. At the end of the month, the company had only 30 pounds of aluminum in its warehouse. Schmidt used 4,200 direct labor hours during the month, at an average cost of $41.50 per hour. Required: Compute the following variances for the month: 1. The purchase price variance for aluminum. Indicate whether this variance is favorable or unfavorable. 2. The usage variance for aluminum. Indicate whether this variance is favorable or unfavorable. 3. The direct labor rate variance. Indicate whether this variance is favorable or unfavorable. 4. The direct labor efficiency variance. Indicate whether this variance is favorable or unfavorable. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) 1. Purchase price variance 2. Usage variance 3. Direct labor rate variance 4. Efficiency variance Standard Cost Sheet, Product XV-1 SCHMIDT MACHINERY COMPANY Descriptions Direct materials: Aluminum Standard Cost Sheet Product: XV-1 Quantity Cost Rate Subtotal Total 4 pounds $25 per pound $ 100 PVC 1 pound Direct labor 5 hours 40 per pound 40 per hour 40 200 Variable factory overhead 5 hours 12 per hour 60 Total variable manufacturing cost $ 400 Fixed factory overhead* 5 hours 24 per hour 120 120 Standard manufacturing cost per unit $ 520 $ 50 Standard variable selling and administrative cost per unit *Budgeted fixed factory overhead cost = $120,000