StandardCost summary; Materials and Labor Cost Variances

Perkins Processors Inc. produces an average of 10,000 units each month. The factory standards are 20,000 hours of direct labor and 10,000 pounds of materials for this volume. The standard cost of direct labor is $9.00 per hour, and the standard cost of materials is $4.00 per pound. The standard factory overhead at this level of production is $20,000.

During the current month the production and cost reports reflected the following information:

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2.Calculate the materials (use thematerials purchase price variance) and labor cost variances, and indicate whether they are favorable or unfavorable. Use "F" and "U" to designate favorable and unfavorable variances. Enter all amounts as positive numbers.

Materials purchasepricevariance $

Materials quantity variance $

Labor rate variance $

Labor efficiency variance $