Material and Labor Variances:

Question)

Apparently this is the correct answer below, but can you show the calculations to get to these answers, if they're the correct ones? Thank you!

PROBLEM DATA McGrade Industries manufactures a product whose standard direct materials and direct labor unit costs are as follows: Direct materials: 5 pounds at $16 per pound $80 Direct labor: 6 hours at $8 per hour 48 Actual data for October: Actual production: 7,600 units Direct materials used in production: 39,500 pounds costing $628,050 Direct labor: 44,000 hours costing $354,200 REQUIREMENT 1. What is the total actual cost of October's production? Based on the standards, what should it have cost? Compute the total difference (variance) between these two amounts. Actual Cost Standard Cost Difference Direct materials Direct labor Total Once you have made all the calculations, you should have this information: Direct Materials Direct Labor Total Actual Cost Standard Cost Difference 628,050 608,000 20,050 354,200 364,800 (10,600) 982 250 972,800 9,450