Assume that Schmidt Machinery Company had the standard costs reflected in Exhibit 14.5. In a given month, the company used 3,480 pounds of aluminum to manufacture 926 units. The company paid $29.10 per pound during the month to purchase aluminum. At the beginning of the month, the company had 56 pounds of aluminum on hand. At the end of the month, the company had only 36 pounds of aluminum in its warehouse. Schmidt used 4,500 direct labor hours during the month, at an average cost of $42.10 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.) x Answer is complete but not entirely correct. Standard Cost Sheet, Product XV-1 1 . Purchase-price variance 14, 186 Unfavorable SCHMIDT MACHINERY COMPANY 2 Usage variance 6,100 x Favorable V Standard Cost Sheet 3 Direct labor rate variance 9,450 Unfavorable V Product: XV-1 4 Efficiency variance 5,200 Favorable Descriptions Quantity Cost Rate Subtotal Total Direct materials: Aluminum 4 pounds $ 25 per pound $ 100 PVC 1 pound 40 per pound 40 Direct labor 5 hours 40 per hour 200 Variable factory overhead 5 hours 12 per hour 60 Total variable manufacturing cost $ 400 Fixed factory overhead hours 24 per hour 120 120 Standard manufacturing cost per unit $ 520 Standard variable selling and administrative cost per unit $ 50