RDI Products Co. manufactures a variety of products made of plastic and aluminum components. During the winter months, substantially all of the production capacity is devoted to the production of lawn sprinklers for the following spring and summer seasons. Other products are manufactured during the remainder of the year. The company has developed standard costs for its several products. Standard costs for each year are set in the preceding October. The standard cost of a sprinkler for the current year is $3.70, computed as follows: Direct materials: Aluminum-2 lb @ $.40 per lb. . Plastic-1.0 lb @ $.38 per lb... Production labor-.3 hr @ $8.00 per hr Factory overhead. Total.... $ .08 .38 2.40 .84 $3.70 During February, RDI Products manufactured 8,500 good sprinklers. The company incurred the following costs, which it charged to production: Materials requisitioned for production: Aluminum-1,900 lb @ $.40 per lb.... $ 760 Plastic-Regular grade-6,000 lb @ $.38 per lb 2,280 Low grade-3,500 lb @ $.38 per lb. Production labor-2,700 hr @ $8.60 per hr 1,330 23,220 Factory overhead...... Costs charged to production... 7,140 $34,730 Materials price variations are not determined by usage but are charged to a materials price variation account at the time of purchase. All materials are carried in inventory at standard prices. Materials purchases for February were as follows: Aluminum-1,800 lb @ $.48 per lb. . . . $ 864 Plastic-Regular grade-3,000 lb @ $.50 per lb. 1,500 Low grade* -6,000 lb @ $.29 per lb 1,740 *Due to plastic shortages, the company was forced to purchase lower-grade plastic than called for in the standards. This increased the number of sprinklers rejected on inspection. REQUIRED: Calculate price and usage variances for each type of material and for labor, using the formulas in Determination of Variances on pages 421-422 and 424. Materials quantity variance: Aluminum Plastic Labor efficiency variance Standard Quantity Actual Quantity or Hours or Hours lbs. lbs. lbs. lbs. hrs. hrs. Standard Price/Rate Materials purchase price variance: Aluminum Plastic - regular gade Plastic - low grade Labor rate variance Standard Difference Price/Rate /lb. /lb. /hr. Actual Variance Actual Quantity Price/Rate Difference or Hours Variance /lb. /lb. lbs. /lb. /lb. lbs. /lb. /lb. lbs. /hr. /hr. hrs