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XYZ Company manufactures 100-pound bags of fertilizer that have the following unit standard costs for direct materials and direct labor: Direct materials (100 lbs. @

XYZ Company manufactures 100-pound bags of fertilizer that have the following unit standard costs for direct materials and direct labor:

Direct materials (100 lbs. @ $2.00 per lb.)

$200.00

Direct labor (1.0 hours at $25 per hour)

25.00

Total standard prime cost per 100 lb. bag

$225.00

The following activities were recorded for October:

1,500 bags were manufactured.

148,500 lbs. of materials were used.

$38,000 was paid for 1600 hours of direct labor.

There were no beginning or ending work-in-process inventories.

Required

A.

Compute the direct materials variances.

B.

Compute the direct labor variances.

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