Computation of Variable Cost Variances The following information pertains to the standard costs and actual activity for Repine Company for September: Standard cost per unit Direct materials 3 units of material A x $8.00 per unit 2 units of material B x $4.00 per unit Direct labor 2 hours x $15.00 per hour Activity for September Materials purchased Material A 7,000 units x $7.80 per unit Material B 4,800 units x $4.50 per unit Materials used Material A 6,430 units Material B 3,950 units Direct labor used 4,100 hours X $15.50 per hour Production output 2,000 units There were no beginning direct materials inventories. (a) Determine the materials price and quantity variances. Material A Material B Materials price variance $ (1,400) x F V$ (2,400) x U Materials quantity variance 3,440 v U c v 200 v F (b) Determine the labor rate and efficiency variances. Labor rate variance $ 2,050 V U : v' Labor efficiency variance $ 1,500 V U