Problem 1: Direct Maturials Problem 2: Direct Labor A fashion designer created a new design for a gown. The estimated stanard direct materiats are The factory determined the standard hours of 8 yards at a standard cost of $36/y ard. The 0.75hr of tabor per unit at a standard cost of actual result for 500 gowns was a total of 4,125 $12.50/hr. The actual result for 4,000 units was a yards at a cost of $34.75/ yard. Calculate the total of 3,800 hours at a cost of $12.75/hr. direct materials cost variance and the direct Catculate the direct labor cost variance and the materials quantity variance. direct labor efficiency variance. Enter favorable variances as negative numbers. Enter favorable variances as negative numbers. DM Price Variance DL Rate Variance Actual Price Actual Rate Standard Price Standard Rate = Price Variance = Rate Variance x Actual Quantity x Actual Quantity DM Price Variance DL Rate Variance DM Quantity Variance DL Time Variance Actual Quantity Actual Time Standard Quantity Standard Time = Qty Variance = Time Variance x Standard Price x Standard Rate DM Quantity Variance DL Time Variance Total DM Variance Total DL Variance Example: Direct Materials Simon makes strawberry jelly. His standard for direct materials is 12 oz per jar at a standard cost of $0.75/oz. The actual result for 500 jars of jelly using 5,000 ounces at a cost of $0.84/0z. Calculate the direct materials cost variance and the direct materials quantity variance. Enter favorable variances as negative numbers. \begin{tabular}{lr} DM Price Variance & \\ Actual Price & $0.84 \\ Standard Price & $0.75 \\ = Price Variance & $0.09 \\ x Actual Quantity & 5,000 \\ \hline DM Price Variance & $450.00 \\ \hline \end{tabular} DM Quantity Variance \begin{tabular}{lr} Actual Quantity & 5,000 \\ Standard Quantity & 6,000 \\ = Qty Variance & (1,000) \\ X Standard Price & $0.75 \\ \hline DM Quantity Variance & ($750.00) \\ \hline Total DM Variance & ($300.00) \\ \hline \end{tabular}