mot mapsiberi to Calculation of materials and labor variances Fritz Corp. manufactures and sells a single product. The company uses a standard cost system. The standard cost per unit of product follows: Materials-1 lb plastic @ $3.00 .... Direct labor-1.6 hr @ $10.00..... Factory overhead. Total.. $ 3.00 16.00 4.45 $23.45 The charges to the manufacturing department for November, when 5,000 units were produced, follow: Materials-5,300 lb @ $3.00... Direct labor-8,200 hr @ $9.80. Factory overhead. Total....... .... $ 15,900 80,360 23,815 $120,075 The Purchasing department normally buys about the same quantity as is used in production during a month. In November, 5,500 lb were purchased at a price of $2.90 per pound. Required: Calculate the following from standard costs for the data given, using the formulas on pages 421-422 and 424: 1. Materials quantity variance. 2. Materials purchase price variance (at time of purchase). 3. Labor efficiency variance. 4. Labor rate variance. 5. Give some reasons as to why both the materials quantity vari- ance and labor efficiency variance might be unfavorable. 1. Materials quantity variance 3. Labor efficiency variance 2. Materials purchase price variance 4. Labor rate variance 5. Standard Quantity or Hours lbs. Actual Quantity or Hours lbs. hrs. hrs. Difference Standard Price/ Rate /lb. /hr. Variance Standard Price/ Rate Actual Price/ Rate Actual Quantity Difference or Hours Variance /lb. /lb. /hr. /hr. lbs. hrs.