Prepare the material variances and labor variances as indicated below.
1. A company manufactures lariats and requires 2 raw materials.
Standard costs are:
Materials	Quantity	Price per	Stand/lariat
Raw Hide	60 ft	1.25/ft	75.00
Horse Hair	30 lbs	1.25 per lb	37.50
		Total	112.50
Actual costs are:
Materials	Quantity	Price per	Actual/lariat
Raw Hide	70 ft	1.30/ft	91.00
Horse Hair	25 lbs	1.25 per lb	31.25
		Total	122.25
Number of lariats produced 30
1. What is the total materials variance?
2. Draw a grid to show variances.
3. Show work for materials price variance for each material.
4. Show work for materials quantity variance for each material.
2. In making the above lariats, the following labor data is available:
	Hrs/unit	Rate/hour
Budgeted (standard)	3	$9.00
Actual	2	$10.50
1. What is the total labor variance?
2. Draw a grid to show variances.
3. What is the labor rate variance?
4. What is the labor efficiency variance?