Greetings,

I have a problem around identifying the materials and labor variance. Would you explain the lrocess for computing these two variances for the problem below?

Thank you for your support.

26. Materials and labor variances. Seuss Company's budget contains the following standards: Material-2 Pounds at $.50 per Pound per Unit of Output... Direct Labor-1 Hour at $9.00 per Unit of Output............. $1.00 9.00 Although the firm budgeted 100,000 units of output for June, it produced only 97,810. It purchased and used 200,000 pounds of materials for $105,500. Direct labor costs were $905,000 for 99,200 hours. a. Compute the materials variance. b. Compute the labor variance. inn in the previous exercise for Seuss