Computation of Variable Cost Variances The following information pertains to the standard costs and actual activity for Tyler Company for September: Standard cost per unit Direct materials 4 units of material A * $2.00 per unit 1 unit of material B x $3.00 per unit Direct labor 3 hours $8.00 per hour Activity for September Materials purchased Material A 2,600 units X $2.05 per unit Material B 700 units X $3.10 per unit Materials used Material A 2,250 units Material B 605 units Direct labor used 1,480 hours $8.30 per hour Production output 500 units There were no beginning direct materials inventories. (a) Determine the materials price and quantity variances. Material A Materials price variance $ 112.5 U Materials quantity variance 60.5 X U $ Material B 300 X U 315U (b) Determine the labor rate and efficiency variances. 300 X U Labor rate variance Labor efficiency variance 160 F