During April, Dryden Company’s material purchases amounted to 6,500 pounds at a price of $ 7.40 per pound. Actual costs incurred in the production of 2,000 units were as follows:
Direct labor: ....... $ 118,035 ($ 18.30 per hour)
Direct material: ...... $ 31,820 ($ 7.40 per pound)
The standards for one unit of Dryden Company’s product are as follows:
Direct labor: Direct material:
Quantity, 3 hours per unit ......Quantity, 2 pounds per unit
Rate, $ 18.00 per hour ......Price, $ 7.20 per pound
Compute the direct-material price and quantity variances, the direct material purchase price variance, and the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.