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Materials and Labor Variances Deporte Company produces single-colored t-shirts, Materials for the shirts are dyed in large vats. After dying the materials for a given

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Materials and Labor Variances Deporte Company produces single-colored t-shirts, Materials for the shirts are dyed in large vats. After dying the materials for a given color, the vats must be cleaned and prepared for the next batch of materials to be colored. The following standards for changeover for a given batch have been established: Direct materials (2.4 lbs. $0.95) $2.28 5.55 Direct labor (0.75 hr. $7.40) $7.83 Standard prime cost During the year, 79,500 pounds of material were purchased and used for the changeover activity. There were 30,000 batches produced, with the following actual prime costs $74,340 Direct materials Direct labor $173,188 (for 22,450 hrs.) Required: Compute the materials and labor variances associated with the changeover activity, labeling each variance as favorable or unfavorable Material Variances Price variance Usage variance Labor Variances Rate variance Efficiency variance

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