Answer:
1) Direct Materials
Price Variance = $138,474 (F)
Usage Variance = $82,800 (F)
2) Direct Labor
Direct Labor Price = $9,102 (F)
Direct Labor Usage = $4,800 (F)
Explanation:
Material Price Variance = ( Standard price - Actual price) * Actual Quantity purchased
= ($20 - $5.30) *9,420
= $138,474 (F)
Actual Price = $49,926/9,420 = $5.30
Material Usage Variance = ( Standard Quantity - Actual Quantity ) * Standard Price
= ( 11,960 - 7,820 ) $20
=$82,800 (F)
Standard Quantity = 2.60 *4,600 = 11,960
Actual Quantity used = 0+9,420-1,600 = 7,820
Direct Labor price Variance = ( Standard Rate - Actual Rate) * Actual Hours worked
= ($16-$12.30) * 2,460
= $9,102 (F)
Actual time = 61.50*40 = 2,460
Usage variance = ( Standard time - Actual time ) * Standard rate
= ( 2,760 - 2,460) $16
= $4,800 (F)
Standard time = 0.60 *4,600 = 2,760
