The following information comes from the records of Muncy Company.

Required: Compute the direct materials price and quantity variances, direct labor rate and efficiency variances and state whether the variance is favorable or unfavorable. Checks: Direct materials price variance is greater than $3,000 and Unfavorable. Direct labor rate variance is greater than $25,000. (4 points)

Actual costs and quantities:
Direct materials used	37,000 feet @ $6.20 per foot
Direct labor hours used	50,660 hours
Direct labor rate per hour	$16.50
25,000 units were produced during the period.
Standard costs and quantities per unit:
Direct materials	1.5 ft. @ $6.10 per ft.
Direct labor	2 hours @ $17 per hour

Direct Material:
AQ ? AP
AQ ? SP
	Direct materials price variance
AQ ? SP
SQ ? SP
	Direct materials quantity variance
	HINT: Standard Quantity (SQ) = 25,000 units ? 1.5 ft./unit = 37,500 ft.

Direct labor:
AH ? AR
AH ? SR
	Direct labor rate variance
AH ? SR
SH ? SR
	Direct labor efficiency variance
	HINT: Standard Hours (SH) = 25,000 units ? 2 hours/unit = 50,000 hours