Question 1. The standard costs and actual costs for direct materials for the manufacture of 3,000 actual units of product are: Question 2. The standard costs and actual costs for direct labor in the manufacture of 2,500 units of product are as follows: Actual Standard $8.00 $8.75 0.65 pound 0.45 pound Actual $11.80 Material price per pound of Direct material Quantity of material in pound per unit of product Labor rate per hour Amount of hour needed per unit of product Standard $11.00 3.2 Required: Required: Compute the followings variances and indicate if they are favorable or unfavorable: Compute the followings variances and indicate if they are favorable or unfavorable: a. Direct material Price variance b. Direct material Quantity variance c. Total Direct material Cost variance a. Direct labor Rate variance b. Direct labor Time variance C. Total Direct labor Cost variance Solution: Solution: a. DM Price Variance (DMPV) = (AP-SP) x AQ for Actual Production a. DL Rate Variance (DLRV) = (AR-SR) X AH for Actual Production b. DM Quantity Variance (DMQV) = (AQ-SQ) for actual production x SP b. DL Time Variance (DLTV) = (AT-ST) for actual production x SR c. Total DL Cost Variance = DLRV + DLTV C. Total DM Cost Variance = DMPV + DMQV Alternatively, Alternatively, Total DL Cost Variance = (Actual cost of DL/ unit - Standard cost of DL/ unit) x Actual unit Total DM Cost Variance = (Actual cost of DM/ unit - Standard cost of DM/ unit) x Actual unit