Part 1: Calculate the direct materials price variance. First you will need to figure the standard price per unit and the actual price per unit to determine the direct materials price variance. What are the formulas? The following data relate to direct materials costs:

Materials cost per pound: standard, $50.00 actual, $50.60

Pounds per unit: standard, 5000 lbs.; actual, 4950 lbs.

Units of production: 15,000

What is the standard cost per unit _______________________ What is the formula?___________________________ What is the actual cost per unit ______________________________________ What is the formula?_________________________ What is the total direct materials cost variance on the 15,000 units? What is the formula?________________________

Part 2: Determine the direct labor time variance, rate variance, and total cost variance. What are the formulas:

direct labor time variance _____________________________________________ What is the formula?_______________________

rate variance _______________________________________________________ What is the formula?________________________

total cost variance ___________________________________________________ What is the formula?____________________________

Part 3: Prepare a budget performance report.