1. Required: Calculate the price variance for materials based on the actual purchase.

Calculate the efficient variance for materials based on production.

Calculate the price variance for materials based on production.

Calculate the efficient variance for materials based on production.

The industrial engineer had established the following standard for producing sweatshirts.

Direct Materials 3 square yards at $ 1.50 per square yard

Direct Labor 1.5 hours at $ 6 per hour.

During the period actual results were as follows

Sweatshirts Produced 100,000

Direct Materials Used 303,000 square yards at $ 1.60 per square yard

Direct Materials Purchased 320,000 square yards at $ 1.60 per square yard

Direct Labor 142,000 hours at $ 6.10 per hour.