Marion company makes widgets. The following standards have been developed for the production costs:

Materials 4 pounds costing $6 / lb.

Labor 1.5 hours of labor costing $12 / hr.

Materials purchases for the month total $72,500 at an average cost of $5.80/lb. All the material was used in production. Production used 4,200 hours at an average labor rate of $13. 3,000 units were produced.

Required: Be sure to label each variance as F favorable or U unfavorable.

1. What is the standard materials and labor cost for each widget?

2. Calculate the following variances for the months production:

Total direct materials variance

Materials price variance

Materials usage variance

Total direct labor variance

Labor price (rate) variance

Labor usage (efficiency) variance