Exercise 23-8

The following direct materials and direct labor data pertain to the operations of Laurel Company for the month of August.

Costs

Actual labor rate $15 per hour

Actual materials price $140 per ton

Standard labor rate $14.50 per hour

Standard materials price $142 per ton

Quantities

Actual hours incurred and used 3,800 hours

Actual quantity of materials purchased and used 1,500 tons

Standard hours used 3,850 hours

Standard quantity of materials used 1,490 tons

(a)

Compute the total, price, and quantity variances for materials and labor.

Total materials variance $ Favorable/ unfavorable/ neither for all

Materials price variance $

Materials quantity variance $

Total labor variance $

Labor price variance $

Labor quantity variance $