Question $4(12$ points$)$

Rhodes Corporation manufactures a product with the following standard costs:

Direct materials $(20$ yards @ $$1\mathrm{.}85$ per yard$)$

Direct labor $(4$ hours @ $$12\mathrm{.}00$ per hour$)$

$$37\mathrm{.}00$

Standards are based on normal monthly production involving $2,000$ direct labor hours $(500$ units of output$).$

The following information pertains to July:

Direct materials purchased $(16,000$ yards @ $$1\mathrm{.}80$ per yard$)$

Direct materials used $(9,400$ yards$)$

Direct labor$(1,880$ hours @ $$12\mathrm{.}20$ per hour$)$

Actual production in July: $460$ units

$$28,800$

$22,936$

Required:

A$.$ Compute the two direct materials variances

B$.$ Compute the two direct labor variances