Answer:
Results are below.
Explanation:
<u>To calculate the direct material price and quantity variance, we need to use the following formulas:</u>
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Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (5 - 4.9)*14,000
Direct material price variance= $1,400 favorable
Actual price= 68,600/14,000= $4.9
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (1,500*10 - 14,000)*5
Direct material quantity variance= $5,000 favorable
<u>To calculate the direct labor efficiency and rate 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= (5*1,500 - 7,600)*10
Direct labor time (efficiency) variance= $1,000 unfavorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (10 - 10.5)*7,600
Direct labor rate variance= $3,800 unfavorable
Actual rate= 79,800 / 7,600= $10.5
