Question
The following direct materials and direct labor data pertain to the operations of Laurel Company for the month of August. Costs Actual labor rate $14
The following direct materials and direct labor data pertain to the operations of Laurel Company for the month of August.
Costs | |||
Actual labor rate | $14 | per hour | |
Actual materials price | $120 | per ton | |
Standard labor rate | $13.50 | per hour | |
Standard materials price | $121 | per ton |
Quantities | ||
Actual hours incurred and used | 3,900 hours | |
Actual quantity of materials purchased and used | 2,000 tons | |
Standard hours used | 3,950 hours | |
Standard quantity of materials used | 1,980 tons |
(a) Compute the total, price, and quantity variances for materials and labor.
Total materials variance | $ | FavorableNeither favorable nor unfavorableUnfavorable | ||
Materials price variance | $ | UnfavorableFavorableNeither favorable nor unfavorable | ||
Materials quantity variance | $ | FavorableNeither favorable nor unfavorableUnfavorable | ||
Total labor variance | $ | UnfavorableNeither favorable nor unfavorableFavorable | ||
Labor price variance | $ | UnfavorableFavorableNeither favorable nor unfavorable | ||
Labor quantity variance | $ | UnfavorableNeither favorable nor unfavorableFavorable |
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