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 4 units of material A x $2.00 per unit Direct materials 1 unit of material B x $3.000 per unit 3 hours x $8.00 per hour Direct labor Activity for September Materials purchased Material A 3,400 units x $2.05 per unit 800 units x $3.10 per unit Material B Materials used Material A 3,050 units Material B 705 units Direct labor used 2,050 hours x $8.30 per hour Production output 700 units There were no beginning direct materials inventories. (a) Determine the materials price and quantity variances. Material A Material B 170 U 80 U Materials price variance $ $ 500 U 600 U Materials quantity variance (b) Determine the labor rate and efficiency variances. 480 U Labor rate variance $ 160 F Labor efficiency variance