The management of the REDICO Company would like to implement benchmarking. Standard costs have been established and are presented below. You will want to complete a variance analysis to include efficiency and price variances for materials (cloth and sole assemblies) and labor based on the following data:

Units Produced = 80,000

Units Sold = 60,000

Direct Materials Purchased and Used

Actual yards of cloth purchased and used: 128,000

Actual price incurred per yard: $1.25

Actual individual soles purchased and used: 161,808

Actual price per sole: $0.50

Direct Manufacturing Labor Used

Actual direct labor hours used: 15,748

Actual price per hour: $7.62

Direct labor costs: $120,000

Standard Rates

Standard labor hours per unit: 0.20

Standard labor price per hour: $7.50

Yards material per unit: 1.50

Standard price per yard: $1.15

Soles per unit: 2

Standard price per sole: $ .52

Requirement 2
Efficiency Variances:
(Actual Quantity of Input Used Standard Quantity of Input Allowed for Actual Output) X Budgeted Price of Input
	Actual	Standard	Standard Price	Variance	Favorable or Unfavorable
Cloth				$
(1.5 Yards per Unit)
Soles	X		$	$
(2 per Unit)
Labor	8			$
(.20 per Unit)