Chapter 11: Direct Material Variance

Star Corporation reported the following standards for direct material for the year:

Standard cost per gram $64.50/gram

Standard quantity per unit 8 grams per unit

In the past month, the company purchased 9,000 grams of material at a total cost of $577,800. A total of 8,600 grams were used to produce 1,000 units.

Calculate the direct material price variance and the direct material quantity variance. What is the total direct material variance?

Chapter 11: Direct Labor Variance

McNabb Corporation reports the following standards for direct labor for the year:

Standard cost per hour $17.75

Standard quantity per unit 2 hours

During the year, 35,000 finished goods were produced. The actual hours incurred to produce the finished units were 69,825 hours at a total cost of $1,256,850.

Calculate the direct labor rate variance and the direct labor efficiency variance. What is the total direct labor variance?