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Monty, Inc. manufactures one product called tybos. The company uses a standard cost system and sells each tybo for $8. At the start of monthly

Monty, Inc. manufactures one product called tybos. The company uses a standard cost system and sells each tybo for $8. At the start of monthly production, Monty estimated 9,600 tybos would be produced in March. Monty has established the following material and labor standards to produce one tybo:

Standard Quantity

Standard Price

Direct materials

2.5 pounds

$3 per pound

Direct labor

0.6 hours

$10 per hour

During March 2022, the following activity was recorded by the company relating to the production of tybos:

1. The company produced 9,250 units during the month.
2. A total of 24,280 pounds of materials were purchased at a cost of $66,770.
3. A total of 24,280 pounds of materials were used in production.
4. 5,240 hours of labor were incurred during the month at a total wage cost of $57,640.

Calculate the following variances for March for Monty, Inc. Identify whether each variance is favorable or unfavorable.

(a)

Materials Price Variance

$enter a dollar amount

select an option UnfavorableNot ApplicableFavorable

(b)

Materials Quantity Variance

$enter a dollar amount

select an option UnfavorableFavorableNot Applicable

(c)

Labor Price Variance

$enter a dollar amount

select an option FavorableNot ApplicableUnfavorable

(d)

Labor Quantity Variance

$enter a dollar amount

select an option FavorableUnfavorableNot Applicable

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