Schmidt Machinery Company (Exhibit 14.5) used 3,475 pounds of aluminum in June to manufacture 925 units. The company paid $29.00 per pound during the month to purchase aluminum. On June 1, the company had 55 pounds of aluminum on hand. At the end of June, the company had only 35 pounds of aluminum in its warehouse. Schmidt used 4,450 direct labor-hours in June, at an average cost of $42.00 per hour.

Required:

Compute for June:

1.	Schmidts purchase-price and usage variances for aluminum.

2.	Schmidts direct labor rate and efficiency variances.

EXHIBIT 14.5 Standard Cost Sheet, Product XV-1 SCHMIDT MACHINERY COMPANY Standard Cost Sheet Product: XV-1 Total Quantity Descriptions Unit Cost Subtotal Direct materials: 4 pounds 1 pound 5 hours 5 hours $100 40 200 60 Aluminum $25 PVC Direct labor Variable factory overhead Total variable manufacturing cost Fixed factory overhead* Standard manufacturing cost per unit Standard variable selling and administrative expense per unit 12 5 hours 120 120 $520 S 50 24 Budgeted fixed factory overhead cost $120,000