Part 1

Billy Bats, Inc. manufactures aluminum baseball bats that it sells to university athletic departments. It has developed the following per unit standard costs for 2018 for each baseball bat:

Direct Materials Direct Labor

Standard quantity 2 pounds (Aluminum) hour

Standard price $4.00 $10.00

Unit standard cost $8.00 $5.00

In 2018, the company planned to produce 80,000 baseball bats at a level of 40,000 hours of direct labor. Actual results for 2018 are presented below:

1. Direct materials purchased were 164,000 pounds of aluminum that cost $688,800.

2. Direct materials used were 146,000 pounds of aluminum.

3. Direct labor costs were $374,400 for 39,000 direct labor hours actually worked.

4. Actual production was 76,000 baseball bats.

Instructions

Compute the following variances:

1. Direct materials price.

2. Direct materials quantity.

3. Direct labor price.

4. Direct labor quantity.