Problem 10-35 Direct-Material and Direct-Labor Variances (LO 10-1, 10-3)

During May, Joliet Fabrics Corporation manufactured 590 units of a special multilayer fabric with the trade name Stylex. The following information from the Stylex production department also pertains to May.

Direct material purchased: 18,900 yards at $1.47 per yard	$	27,783
Direct material used: 10,400 yards at $1.47 per yard		15,288
Direct labor: 3,000 hours at $9.24 per hour		27,720

The standard prime costs for one unit of Stylex are as follows:

Direct material: 20 yards at $1.44 per yard	$	28.80
Direct labor: 4 hours at $9.00 per hour		36.00
Total standard prime cost per unit of output	$	64.80

Required: Compute the following variances for the month of May. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).

Required: Compute the following variances for the month of May. (Indicate the effect of each varian "Unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance). 1. Direct-material price variance 2. Direct-material quantity variance 3. Direct-material purchase price variance 4. Direct-labor rate variance 5. Direct-labor efficiency variance