Answer:
Instructions are below.
Explanation:
Giving the following information:
Direct material:
Standard Quantity= 6.8 pounds per unit
Standard cost= $3 per pound
Direct labor:
Standard hours= 0.40
Standard cost= $13 per hour
Direct material purchased= 13,200 punds
Direct material used= 11,880 pounds
Direct material cost= $2.90 per pound.
Production= 1,320 units
<u>With the information provided, we can only calculate the direct material price and quantity variance. We don't have the actual direct labor hours and costs.</u>
To calculate the direct material variances, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (3 - 2.9)*13,200= $1,320 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (6.8*1,320 - 11,880)*3
Direct material quantity variance= (8,976 - 11,880)*3= $8,712 unfavorable
