Hutto Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures.

Direct materials (15 lbs. @ $3 per lb.)			$45
Direct labor (3 hrs. @ $14 per hr.)			42

During May the company incurred the following actual costs to produce 8,200 units.

Direct materials (126,000 lbs. @ $2.80 per lb.)		$	352,800
Direct labor (28,200 hrs. @ $14.10 per hr.).			397,620

AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate

AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price

(1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable.

Answer is not complete Complete this question by entering your answers in the tabs below Required 1 Required 2 Compute the direct materials price and quantity variances and classify it as favorable or unfavorable Actual Cost Standard Cost AP AQ 126,000 SP $ 3.00 SQ SP $ 3.00 AQ 126,000 $ 2.80 123,000 352,800 378,000 369,000 $ 9,000 25,200 $ 25,200 No variance Direct materials price varia Total direct materials variance Vari 9,000 No variance able overhead spending variance $16,200 No variance Required 1 Required 2 >