Material and Labor Variances The following actual and standard cost data for dir

Question

Material and Labor Variances The following actual and standard cost data for direct material and direct labor relate to the production of 2,000 units of a product Actual Costs Standard Costs Direct material 14,700 bs. $4.90 14,000 lbs.@$5.20 Direct labor 19.950 hrs $9.30 21.000 hrs.@ $9.50 Determine the following variances Do not use negative signs with any of your answers. Next to each variance answer, select either "F for Favorable or "U for Unfavorable. for Favorable or "Ur for Unfavorable Materials Variances Actual cost: Split cost: Standard cost: a. Materials price b. Materials efficiency 0 Labor Variances Actual cost Split cost: Standard cost: c.Labor rate d. Labor efficieny Check

Explanation / Answer

a) Material variance :

b) Labour variance :

Actual cost (14700*4.90) 72030 Split cost 770 Standard cost (14000*5.20) 72800 Material price (5.20-4.90)*14700 4410 Favorable Material quantity   (14000-14700)*5.20 3640 unfavorable

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