Problem 10-38 Direct-Material and Direct-Labor Variances (LO 10-1, 10-3)

Valport Valve Company manufactured 7,900 units during March of a control valve used by milk processors in its Shreveport plant. Records indicated the following:

Direct labor		48,200	hr. at $14.10
Direct material purchased		26,000	lb. at $2.60
Direct material used		23,400	lb.

The control valve has the following standard prime costs.

Direct material:	3	lb. at $2.50 per lb.	$	7.50
Direct labor:	6	hr. at $14.60 per hr.		87.60
Standard prime cost per unit			$	95.10