University of Miami ACC 212 - Managerial Accounting Chapter #21 - Practice Problem Direct Materials & Direct Labor Variances Standards (Budget) Direct Materials Direct Labor Price Standard: $ 2.10 per 1b Rate Standard: $15 per hour Quantity Standard: 2 lbs per unit Efficiency Standard: 3 hours per unit Actual Actual Production 7,350 units Actual Materials Purchased 18,000 lbs = Purchased 36,000 - 2 per 18,000 Actual Cost $ 36,000 = total cost Actual Materials Used 15,100 1bs Actual Direct Labor Hours 21,500 hrs Actual Direct Labor Cost $ 344,000 344,000 = 16per hour 21, 500 Required: Calculate the following variances: 760 1. Direct Materials Price Variance 2. Direct Materials Quantity Variance 3. Direct Labor Rate Variance 4. Direct Labor Efficiency Variance