The following data for the Prender Company pertain to the production of 800 urns during August.

Direct Materials (all materials purchased were used):

Budgeted cost: $4.80 per pound of urn.

Total actual cost: $4,480.

Budgeted cost allowed for units produced was $4,800.

Materials efficiency variance was $96 unfavorable.

Direct Manufacturing Labor:

Budgeted cost is 2 urns per hour at $19.20 per hour.

Actual cost per hour was $19.60.

Labor efficiency variance was $288 favorable.

Required:

a. What is budgeted direct material amount per urn?

b. What is the direct material price variance?

c. What is the total actual cost of direct manufacturing labor?

d. What is the labor price variance for direct manufacturing labor?

Solution (please show all calculations and indicate if variance is Favorable or Unfavorable by circling):

a. Budgeted cost per urn = $__________ / _________

= $_________ per urn

Budgeted number of pounds per urn = $__________ / $________

= __________ pound per urn

b. Materials price variance = Total variance - efficiency variance

= _____________ ________________

= $__________ Favorable or Unfavorable

c. Total budgeted labor cost of actual hours = ___________________________ - Efficiency variance _____________

Actual hours = $_______ / ________ = ________ hours

Total actual costs = ________ $_______ = $_________

d. Labor price variance = $__________ $___________

= $__________ Favorable or Unfavorable