Answer:
Instructions are below.
Explanation:
Giving the following information:
<u>Standard quantity:</u>
Direct materials (pounds)= 50,000/4= 12,500 pounds
Direct materials (pounds)= 12,500/5,000= 2.5 pounds per unit
Direct labor (hours)= 36,000/18= 2,000 hours
Direct labor (hours)= 2,000/5,000= 0.4 hours
A<u>ctual quantity:</u>
Actual direct materials= (49,600/4)= 9,920 pounds
Actual direct labor= 34,020/18= 1,890 hours
Production= 4,850
T<u>o calculate the direct labor quantity variance, we need to use the following formula:</u>
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Standard quantity= 2.5*4,850= 12,125
Direct material quantity variance= (12,125 - 9,920)*4
Direct material quantity variance= $8,820 favorable
<u>To calculate the direct labor time variance, we need to use the following formula:</u>
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Standard quantity= 0.4*4,850= 1,940
Direct labor time (efficiency) variance= (1,940 - 1,890)*18
Direct labor time (efficiency) variance= $900 favorable
