Riggins, Inc. manufactures one product called tybos. The company uses a standard cost system and sells each tybo for $8. At the start of monthly production, Riggins estimated 9,500 tybos would be produced in March. Riggins has established the following material and labor standards to produce one tybo:n
_________________________Standard Quantity Standard Pricen
Direct materials........................2.5 pounds..................$3 per poundn
Direct labor...............................0.6 hours...................$10 per hourn
During March 2013, the following activity was recorded by the company relating to the production of tybos:n
1. The company produced 9,000 units during the month.n
2. A total of 24,000 pounds of materials were purchased at a cost of $66,000.n
3. A total of 24,000 pounds of materials were used in production.n
4. 5,000 hours of labor were incurred during the month at a total wage cost of $55,000.n
Instructionsn
Calculate the following variances for March for Riggins, Inc.n
Materials price variancen
Materials quantity variancen
Labor price variancen
Labor quantity variancen