Please help me with the answer to this question by providing step by step solution to section a and b. Thank you in advance.

Materials and Labor Variances. Brier Company produces car covers. (This is the same company as the previous exercise. This exercise can be assigned independently.)

For direct materials, the standard price for 1 yard of material is $5 per yard. A standard quantity of 8 yards of material is expected to be used for each car cover produced. During September, Brier Company purchased 45,000 yards of material for $238,500 and used 39,000 yards to produce 5,100 car covers.

For direct labor, Brier Company established a standard number of direct labor hours at three hours per car cover. The standard rate is $16 per hour. A total of 14,700 direct labor hours were worked during September, at a cost of $238,140, to produce 5,100 car covers.

Required:

a) Calculate the materials price variance and materials quantity variance using the format shown in Figure 10.4. Clearly label each variance as favorable or unfavorable.

b) Calculate the labor rate variance and labor efficiency variance using the format shown in Figure 10.6. Clearly label each variance as favorable or unfavorable.

Figure 10.4

Figure 10.6

For section a

For Section b

Figure 10.4 Direct Materials Variance Analysis for Jerry's Ice Cream Note: AQ? = Actual quantity of materials purchased. AP = Actual price of materials. AQ = Actual quantity of materials used in production. SP = Standard price of materials. SQ = Standard quantity of materials for actual level of activity. *Standard quantity of 420,000 pounds - Standard of 2 pounds per unit x 210,000 actual units produced and sold. **$420,000 standard direct materials cost matches the flexible budget presented in Figure 10.2. *$88,000 unfavorable materials price variance = $528,000 - $440,000. Variance is unfavorable because the actual price of $1.20 is higher than the expected (budgeted) price of $1. *$(21,000) favorable materials quantity variance = $399,000 - $420,000. Variance is favorable because the actual quantity of materials used in production of 399,000 pounds is lower than the expected (budgeted) quantity of 420,000 pounds. i + Actual Quantity at Standard Price = AQ x SP Standard Materials Cost (Flexible Budget) = SQx SP Actual Materials Cost = AQ'x AP 440,000 pounds x $1.20 per pound = $528,000 440,000 pounds $1.00 per pound = $440,000 420,000 pounds* x $1.00 per pound $420,000** $88,000 unfavorable materials price variancet = AQUX SP 399,000 pounds $1.00 per pound = $399,000 $(21,000) favorable materials quantity variance Figure 10.6 Direct Labor Variance Analysis for Jerry's Ice Cream Note: AH = Actual hours of direct labor. AR = Actual rate incurred for direct labor. SR = Standard rate for direct labor. SH = Standard hours of direct labor for actual level of activity. *Standard hours of 21,000 = Standard of 0.10 hours per unit x 210,000 actual units produced and sold. **$273,000 standard direct labor cost matches the flexible budget presented in Figure 10.2. $37,800 unfavorable labor rate variance = $283,500 - $245,700. Variance is unfavorable because the actual rate of $15 is higher than the expected (budgeted) rate of $13. * $(27,300) favorable labor efficiency variance = $245,700 - $273,000. Variance is favorable because the actual hours of 18,900 are lower than the expected (budgeted) hours of 21,000. Actual Labor Cost = AH XAR Actual Hours at Standard Rate = AHX SR Standard Labor Cost (Flexible Budget) = SHX SR 21,000 hours* * $13 per hour = $273,000** 18,900 hours x $15 per hour = $283,500 18,900 hours x $13 per hour $245,700 L. $37,800 unfavorable $(27,300) favorable labor efficiency variance labor rate variancet EXERCISES (continued) 30. Materials and Labor Variances a. As shown below, the materials price variance is As shown below, the materials quantity variance is $13,500 Unfavorable Actual Materials Costs = AQP AP yards x per yard Actual Quantity at Standard Rate AQ' SP yards per yard Standard Materials Costs (Flexible Budget) = SQ x SP yards per yard $13,500 Unfavorable materials price variance AOU X SP yards per yard materials quantity variance EXERCISES (continued) 36. Materials and Labor Variances (continued) b. As shown below, the labor rate variance is As shown below, the labor efficiency variance is ($9,600) Favorable Actual Hours Actual Labor Costs at Standard Rate = AH AR AH SR hours X hours Standard Labor Costs (Flexible Budget) = SH SR hours per hour per hour per hour labor rate variance ($9,600) Favorable labor efficiency variance