Direct Materials and Direct Labor Variances

At the beginning of June, Bezco Toy Company budgeted 22,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows:

Direct materials	$13,200
Direct labor	18,480
Total	$31,680

The standard materials price is $0.40 per pound. The standard direct labor rate is $14.00 per hour. At the end of June, the actual direct materials and direct labor costs were as follows:

Actual direct materials	$12,200
Actual direct labor	17,100
Total	$29,300

There were no direct materials price or direct labor rate variances for June. In addition, assume no changes in the direct materials inventory balances in June. Bezco Toy Company actually produced 19,800 units during June.

Determine the direct materials quantity and direct labor time variances. Round your per unit computations to two decimal places and round your answers to the nearest dollar, if required. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Direct materials quantity variance	$fill in the blank 1	FavorableUnfavorableUnfavorable
Direct labor time variance	$fill in the blank 3	FavorableUnfavorableUnfavorable

number 1 is right but number 2 is wrong

• 1) Direct materials quantity variance=$320 Unfavorable

  =Standard rate*(Actual quantity-Standard quantity)

  = 0.40*(30,500-29,700)

  =$320 Unfavorable

  Standard quantity of direct materials for 22,000 units=Standard direct materials cost /Standard materials price per pound

  =13,200/0.40

  =33,000

  Standard quantity of direct materials per unit=33,000/22,000=1.5

  Standard quantity=Actual production*standard quantity of direct materials per unit

  =19,800*1.5=29,700

  Actual quantity of direct materials used=Actual cost of direct materials/Actual price=$12,200/0.40=30,500

• Below is the wrong answer - need help finding the right one. It isn't 462

  2) Direct labor time variance=$462 Unfavorable

  =(Actual hours-standard hours)*standard rate

  =(1,221-1,188)*14

  =$462 Unfavorable

  Standard hours of direct labor=18,480/14=1,320

  Standar hours of direct labor per unit=1,320/22,000=0.06

  Standard hours of direct labor for actual production=19,800*0.06=1,188

  Actual hours of direct labor used=17,100/14=1,221