Direct Labor Variances

Tip Top Corp. produces a product that requires 8 standard hours per unit at a standard hourly rate of $14 per hour. If 3,900 units required 32,100 hours at an hourly rate of $13.3 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

a. Direct labor rate variance

$

b. Direct labor time variance

$

c. Direct labor cost variance

Ruby Company produces a chair that requires 5 yards of material per unit. The standard price of one yard of material is $7.50. During the month, 8,500 chairs were manufactured, using 43,600 yards at a cost of $7.55 per yard.

Determine the following: Enter favorable variances as negative numbers.

a. Price variance	$
b. Quantity variance	$
c. Cost variance