Setting Standards, Material and Labor Variances

Granite, per square foot	$50.00
Glue (10 oz. @ $0.15)	1.50
Direct labor hours:
Cutting labor (0.10 hr. @ $15)	1.50
Installation labor (0.25 hr. @ $25)	6.25

These standards assumed that one seamless counter requires one sink cut (the space into which the sink will fit) as well as cutting the counter to fit the space available.

Charlene tracked the actual costs incurred by Tom and Tony for granite installation for the next six months. She found that they completed 50 jobs with an average of 32 square feet of granite installed in each one. The following information on actual amounts used and cost was gathered:

Granite purchased and used (1,640 sq. ft.)	$80,248
Glue purchased and used (16,000 oz.)	$2,560
Actual hours cutting labor	180
Actual hours installation labor	430

The actual wage rate for cutting and installation labor remained unchanged from the standard rate.

Required:

If an amount is zero, enter "0" and select neither from the dropdown. If required, enter favorable values as negative numbers.

1. Calculate the materials price variances and materials usage variances for granite and for glue for the past six months.

Granite
Materials price variance ????	$	Favorable
Materials usage variance 2,000	$	Unfavorable
Glue
Materials price variance 160	$	Unfavorable
Materials usage variance 0	$	Neither