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During June, Fraser Companys material purchases amounted to 5,000 pounds at a price of $8.2 per pound. Actual costs incurred in the production of 1,000

  1. During June, Fraser Companys material purchases amounted to 5,000 pounds at a price of $8.2 per pound. Actual costs incurred in the production of 1,000 units were as follows:

Direct labor:

$66,500 ($19 per hour)

Direct material:

$36,900 ($8.20 per pound)

The standards for one unit of Fraser Companys product are as follows:

Direct labor: Quantity, 2.1 labor hours per unit; Rate, $21 per labor hour

Direct material: Quantity, 4.2 pounds per unit; Price, $8.50 per pound

Required:

Compute the direct-material price and quantity variances, the direct-material purchase price variance, and the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.

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