Materials and Labor Variances

1. Horseco manufactures saddles. The company set the following standards: Leather per saddle: 10 feet. Cost per foot: $2. In June, it manufactured 6,000 saddles. The company used 58,000 feet of leather. It purchased 70,000 feet of leather for $147,000. Calculate the materials price and efficiency variances.

2. Kiteco makes kites. Its standards are 2 hours of work at $30 per hour (including benefits) per kite. In March, employees worked 60,000 hours, made 32,000 kites and earned $1,725,000 in wages. Calculate the labor rate and efficiency variances.