Answer:
Results are below.
Explanation:
<u>To calculate the direct material price, quantity, and total variance, we need to use the following formulas:</u>
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (193 - 190)*1,700
Direct material price variance= $5,100 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (1,680 - 1,700)*193
Direct material quantity variance= $3,860 unfavorable
Total variance= Direct material price variance +/- Direct material quantity variance
Total variance= 5,100 - 3,860
Total variance= $1,240 favorable
<u>To calculate the direct labor efficiency, rate, and total variance; we need to use the following formulas:</u>
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (4,650 - 4,600)*14.5
Direct labor time (efficiency) variance= $725 favorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (14.5 - 15)*4,600
Direct labor rate variance= $2,300 unfavorable
Total variance= Direct labor time (efficiency) variance +/- Direct labor rate variance
Total variance= 725 - 2,300
Total variance= $1,575 unfavorable
