XYZ Co. manufactures two products, Product A and Product B. Both products require Material 1 and Material 2. Plant information regarding standards follows. Standard per Case of product Std price per unit Product A Product B Material 1 (lbs) $ 7.15 10 9 B Material 2 (lbs) $ 2.00 15 18 Std labor quantity (hrs) 0.50 0.75 Std labor rates p/hr $ 20.00 $ 20.00 2 At the end of the year, ABC had the following actual results. There were no beginning or ending inventories for Beither Materials 1 or 2. 4 5 Actuals per product 6 7 Product A Product B Actual Production (cases) 5,250 10,200 9 Actual Labor rate 0 Actual Hours used 1 2 $ 20.42 $ 19.80 2,660 7,550 3 Actual price per lb 5 Actual lbs purchased & used 6 7 Material 1 Material 2 $ 7.21 $ 1.98 145,000 261,200 8 Calculations 9 01. Compute the Direct Materials Price, Quantity, and total variances. 2 Direct Materials Material 1 Material 2 3 Price Variance 4 Actual Price 15 Standard Price 16 Variance 47 x Actual Quantity 48 DM Price Variance 49 50 51 Total enter data in blue cells enter formulas in yellow cells Favorable or Unfavorable? use the formula in these cells 52 Quantity Variance Chantar