The normal capacity of the Malloy Company is 20,000 direct labor hours and 10,000 units per month.A finished unit requires 15 pounds of materials at an estimated cost of $1.00 per pound.The estimated cost of labor is $12.00 per hour.It is estimated that overhead for a month will be $15,000.

During the month of June, 19,000 direct labor hours were worked at an average rate of $11.50 an hour.The number of units produced was 9,000, using all 132,000 pounds of material that were purchased at a cost of $1.05 per pound.

a.

Make a standard cost summary showing the standard unit cost.

b.

Calculate the material and labor variances.