Actual experience for the current year:
Purchases of raw materials (15,000 yards at $13) $195,000
Raw materials used 12,000 yards
Direct labor costs (10,200 hours at $10) $102,000
Actual variable overhead cost $84,150
Units produced 12,600 units
Standards per unit of product:
Raw materials 1.1 yards at $15 per yard
Direct labor 0.80 hours at $9.50 per hour
Variable overhead $8 per direct labor hour
Compute the following variances for raw materials, direct labor, and variable overhead, assuming that the price variance for materials is recognized at point of purchase:
a. Direct materials quantity variance
b. Direct materials price variance
c. Direct labor efficiency variance
d. Direct labor rate variance
Using the same facts as above, except assme that 12,000 yards of material used was same as the amount of raw materials purchased for the current year.
a. The materials quantity variance is __?
b. Ther materials price variance is __?