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Material and Labor Variances The following actual and standard cost data for direct material and direct labor relate to the production of 2,000 units of

Material and Labor Variances The following actual and standard cost data for direct material and direct labor relate to the production of 2,000 units of a product:

Actual Costs Standard Costs
Direct material 7,800 lbs. @ $5.30 8,000 lbs. @ $5.10
Direct labor 12,400 hrs. @ $8.40 12,000 hrs. @ $8.70

Determine the following variances:

Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable.

Materials Variances
Actual cost:

Split cost:

Standard cost:

a. Materials price

FU

b. Materials efficiency

FU

Labor Variances
Actual cost:

Split cost:

Standard cost:

c. Labor rate

FU

d. Labor efficieny

FU

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