PROBLEM 4

The following information describes production activities of the Central Corp.:

Raw materials used 16,000lbs @ $4.05 per lb

Factory payroll 5545 hrs for a total of $72,085 30,000 units were completed during the year Budgeted standards for each unit produced: 1/2 lb. of raw material at $4.15 per lb. 10 minutes of direct labor at $12.50 per hour

Compute the direct materials price and quantity and the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.