In early 2015, Duncan Manufacturing had budgeted for the production and sale of 20,000 units

at a sales price of $25.00 per unit. The following information is available regarding the standard

cost for each unit.

Direct materials

$6.00 (3 pounds at $2.00 per lb)

Direct labor

$3.50 (10 minutes of assembly at $.35 per minute)

Actual results for 2018 were determined to be as follows:

Number of units produced and sold

18,000 units

Sales

$477,000 ($26.50 per unit)

Direct materials costs

$119,925 (58,500 lbs purchased and used at

$2.05 per lb)

Direct labor costs

$51,300 (171,000 minutes at $.30 per minute)

Compute the following variances and indicate whether the variance is favorable or unfavorable

3. Sales price variance

4. Direct material price variance

5. Direct materials usage variance

6. Direct labor rate variance

7. Direct labor efficiency variance