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Actual Cost of Direct Materials: $225,000

Standard Cost of Direct Materials: $224,800

Actual Materials Used: 30

Standard Materials Used: 31

Actual Direct Labor Rate: $15.50

Standard Labor Rate: $15.00

Actual Hours Worked: 45

Standard Hours Worked: 40

Amount Favorable/ Unfavorable

Calculate Materials Variances:

Materials Price Variance: $-7,452 Unfavorable

Materials Quantity Variance: $7,252 Favorable

Calculate LaborVariances:

Labor Rate Variance: $-22.50 Unfavorable

Labor Efficiency Variance: $-75 Unfavorable

Discuss your observations about the variances and ways to plan to improve any of the variances.