Answer:
Instructions are below.
Explanation:
Giving the following information:
Actual labor rate $13 per hour
Actual materials price $128 per ton
Standard labor rate $12.50 per hour
Standard materials price $130 per ton
Actual hours incurred and used 4,150 hours
The actual quantity of materials purchased and used 1,220 tons
Standard hours used 4,300 hours
The standard quantity of materials used 1,200 tons
1) To calculate the direct material total, price, and quantity variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (130 - 128)*1,220
Direct material price variance= $2,440 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (1,200 - 1,220)*130
Direct material quantity variance= $2,600 unfavorable
Total direct material cost variance= 2,440 - 2,600= $160 unfavorable
2) To calculate the direct labor total, time, and rate variance, we need to use the following formulas:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (4,300 - 4,150)*12.5
Direct labor time (efficiency) variance= $1,875 favorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (12.5 - 13)*4,150
Direct labor rate variance= $2,075 unfavorable
Total direct labor cost variance= 1,875 - 2,075= $200 unfavorable
