Variance Analysis
Missouri Sporting Goods Company uses a standard costing system in its manufacture of 10-pound
dumbbells. The standard cost for steel is $0.60 per pound. Each dumbbell should require 0.3 standard
direct labor hours. The standard direct labor rate is $4.50 per hour. During March, the company produced
65,000 dumbbells. It purchased and used 657,000 pounds of steel. The steel cost $381,060. Direct
labor hours totaled 22,100. Direct labor cost was $100,555.
REQUIREMENTS
Using this information, compute the following variances for March. Indicate whether each variance is
favorable (F) or unfavorable (U).
1.)	Direct materials price variance
2.)	Direct materials quantity (efficiency) variance
3.)	Direct labor rate (price) variance
4.)	Direct labor efficiency variance