1. Seacoast company provided the following information about its standard costing system for 2019:

Standard Data Actual Data

Materials 10 Lbs@ $4 per Ibs. Produced 4,000 Units

Labour 3 hrs. @ $21 per hr Materials purchased 50,000 Ibs. For $215,000

Budgeted Production 3,500 units Materials Used 41,000 Ibs

Labour Worked 11,000 hrs costing $220,00

Instructions

Calculate the labour price variance and the labour quantity variance

1. Calculate the price and usage variance for materials
2. Provide some practical reasons for a favourable and unfavourable price and quantity variance for both material and labour variance