Materials and Labor Variances The following actual and standard cost data for direct materials and

direct labor relate to Hadley Companys production of 2,000 units of a product

Actual costs Standard costs

Direct materials................................. 3,900 lb. @ $5.20 4,000 lb. @ $5.10

Direct labor .................................... 6,200 hr. @ $8.40 6,000 hr. @ $8.60

Determine the following variances:

a. Materials price c. Labor rate

b. Materials efficiency d. Labor efficiency