Avatar, Inc. has prepared the following standard cost sheet for one unit of the product.

Direct materials (5 pounds at $3 per pound)$15.00

Direct labor (2 hours at $13.00 per hour)$26.00

During the month of November, the company manufactures 450 units and incurs the following actual costs.

Direct materials purchased and used (2,000 pounds)$8,000

Direct labor (1,000 hours)$12,000

Instructions:

Compute the total, price, and quantity variances for materials and labor.

Direct Material Variances(AQ AP)-(SQ SP)=Total Favorable or Unfavorable

Total Direct Material Variance - =

(AQ AP)-(AQ SP)=Total Favorable or Unfavorable

Direct Material Price Variance - =

(AQ SP)-(SQ SP)=Total Favorable or Unfavorable

Direct Material Quantity Variance - =

Direct Labor Variances(AH AR)-(SH SR)=Total Favorable or Unfavorable

Total Direct Labor Variance - =

(AH AR)-(AH SR)=Total Favorable or Unfavorable

Direct Labor Price (Rate) Variance - =

(AH SR)-(SH SR)=Total Favorable or Unfavorable

Direct Labor Quantity Variance