Given:

MFG costs: Standard Price Standard QTY Standard cost per Unit

Direct Materials 4.50 per lb 5.60 pounds 25.20

Direct Labor 12.35 p/h 2 hrs 24.70

Overhead 2.30 p/h 2 hrs 4.60

Questions:

Calculating Direct Materials Cost Variance, you can see that the actual costs arehigherthan standard and the actual quantity purchased and used islessthan standard. The two variances are combined for a totalfavorabledirect material cost variance of $_______________

Calculating Direct Labor Cost Variance, you can see that the actual costs arehigherthan standard and the actual hours arelessthan standard. The two variances are combined for a totalfavorable direct labor cost variance of $___________________

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