Labor Rate and Efficiency Variances

Botella Inc. produces plastic bottles. Each bottle has a standard labor requirement of 0.025 hours. During the month of April, 501,000 bottles were produced using 13,800 labor hours @ $9.25. The standard wage rate is $7.25 per hour.

Required:

Calculate the labor rate and efficiency variances using the columnar and formula approaches. If required, round your answers to the nearest cent.

Labor rate variance	$fill in the blank ___ Unfavorable
Labor efficiency variance	$fill in the blank _____Unfavorable

Botella Inc. produces plastic bottles. Each bottle has a standard labor requirement of 0.02 hours. During the month of April, 540,000 bottles were produced using 13,000 labor hours @ $9.75. The standard wage rate is $8.75 per hour.

Required:

Calculate the total variance for production labor for the month of April. If required, round your answer to the nearest cent. $fill in the blank __________ Unfavorable

Materials Variances

Lata Inc., produces aluminum cans. Production of 15-ounce cans has a standard unit quantity of 4.5 ounces of aluminum per can. During the month of April, 295,000 cans were produced using 1,256,000 ounces of aluminum. The actual cost of aluminum was $0.2 per ounce and the standard price was $0.13 per ounce. There are no beginning or ending inventories of aluminum.

Required:

Calculate the materials price and usage variances using the columnar and formula approaches.

Materials Price Variance	$fill in the blank ______ Unfavorable
Material Usage Variance	$fill in the blank _______ Favorable

Total Materials Variance

Lata Inc. produces aluminum cans. Production of 11-ounce cans has a standard unit quantity of 4.5 ounces of aluminum per can. During the month of April, 310,000 cans were produced using 1,400,000 ounces of aluminum. The actual cost of aluminum was $0.16 per ounce and the standard price was $0.04 per ounce. There are no beginning or ending inventories of aluminum.

Required:

Calculate the total variance for aluminum for the month of April. $fill in the blank ________ Unfavorable