Rand Company produces dry fertilizer. At the beginning of the year, Rand had the following standard cost sheet:

Direct materials (8 lbs. @ $1.30)	$10.40
Direct labor (0.2 hr. @ $18.00)	3.60
Fixed overhead (0.2 @ $3.00)	0.60
Variable overhead (0.2 hr. @ $1.70)	0.34
Standard cost per unit	$14.94

Overhead rates are computed using practical volume, which is 50,000 units. The actual results for the year are as follows:

1. Units produced: 51,000
2. Direct materials purchased: 408,000 pounds at $1.32 per pound
3. Direct materials used: 406,800 pounds
4. Direct labor: 10,500 hours at $17.95 per hour
5. Fixed overhead: $30,680
6. Variable overhead: $18,000

Required:

Note: Enter all variances as positive amounts.

Question Content Area

1. Compute price and usage variances for direct materials.

MPV		Favorable OR Unfavorable
MUV		Favorable OR Unfavorable