FYW Co. developed the following standard costs for its product for 2022: Cost Elements Standard Quantity Standard Price Direct materials 4 pounds $ 5 Direct labor 2 hours 10 Actual results for 2022 were as follows: 56,800 units of product were actually produced. Direct labor costs were $1,092,000 for 112,000 direct labor hours actually worked. Actual direct materials purchased and used during the year cost $1,108,800 for 231,000 pounds.

Instructions 1. Compute the total, price, and quantity variances for materials and indicates it's favorable (F) or unfavorable (U). AQ = AP = SQ = SP = Total material variance = AQ*AP - SQ*SP Material price variance = AQ * AP - AQ * SP Material quantity variance = AQ * SP - SQ * SP

2. Provide one reason why material price variance is favorable

3. Compute the total, price, and quantity variances for labor for March for Riggins, Inc. And indicates it's favorable (F) or unfavorable (U). AH = AR = SH = SR = Total labor variance = AH * AR - SH * SR Labor price variance = AH * AR - AH *SR Labor quantity variance = AH*SR - SH *SR

4. Provide one reason why labor quantity variance is favorable or unfavorable