Petrillo Company produces engine parts and uses a standard cost system. The following information is for a valve the company produces: Standards: Material Labor Actual: Production Material Labor 6 pounds per valve @ $5.20 per pound 1.5 hours per valve @ $12 per hour 5,500 valves produced during the month 36,000 pounds used; 37,000 pounds purchased @ $5.00 per pound 8,000 direct labor hours @ $12.75 per hour Calculate below variances and indicate whether a variance is favorable (F) or unfavorable (U). Clearly show your work and label answers by letter. a. What is Petrillo's total materials variance? b. What is Petrillo's labor rate variance? c. What is Petrillo's labor efficiency variance? 12

Petrillo Company produces engine parts and uses a standard cost system. The following information is for a valve the company produces: \begin{tabular}{ll} \begin{tabular}{l} Standards: \\ Material \\ Labor \end{tabular} & 6 pounds per valve @ $5.20 per pound \\ & 1.5 hours per valve @ $12 per hour \\ Actual: & \\ Production & 5,500 valves produced during the month \\ Material & 36,000 pounds used; 37,000 pounds purchased @ $5.00 per pound \\ Labor & 8,000 direct labor hours@ $12.75 per hour \end{tabular} Calculate below variances and indicate whether a variance is favorable (F) or unfavorable (U). Clearly show your work and label answers by letter. a. What is Petrillo's total materials variance? b. What is Petrillo's labor rate variance? c. What is Petrillo's labor efficiency variance