Q1. Dart Company developed the following standard costs for its product for 2016:

DART COMPANY

Standard Cost Card

Cost Elements		Standard Quantity	*	Standard Price	=	Standard Cost
Direct materials		4 pounds		$5		$20
Direct labor		2 hours		10		20
Variable overhead		2 hours		4		8
Fixed overhead		2 hours		2		4
						$52

The company expected to work at the 120,000 direct labor hours level of activity and produce 60,000 units of product.

Actual results for 2016 were as follows:

• 56,800 units of product were actually produced.
• Direct labor costs were $1,092,000 for 112,000 direct labor hours actually worked.
• Actual direct materials purchased and used during the year cost $1,108,800 for 231,000 pounds.

  Required:

  Compute the following variances for Dart Company for 2016 and indicate whether the variance is favorable or unfavorable. (show calculation!)

  1. Total direct materials variance=____________________________________________________________________

  2. Direct materials price variance=____________________________________________________________________

  3. Direct materials quantity variance=____________________________________________________________________

  4. Total direct labor variance=____________________________________________________________________

  5. Direct labor price variance=____________________________________________________________________

  6. Direct labor quantity variance=____________________________________________________________________