Folsom Fabricators, Inc., uses a standard cost system to account for its single product. The standards established for the product include the following:

Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 lb @$0.50 per lb

Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 hr@$8.00 per hr

The following operating data came from the records for the month:

In process, beginning inventory, none.

In process, ending inventory, 800 units, 80% complete as to labor; material is issued at the beginning of processing. Completed during the month, 5,600 units.

Materials issued to production were 51,680 pounds @ $0.55 per pound.

Direct labor was $304,000 at the rate of $7.60 per hour.

Required:

Calculate the following variances, using the diagram format in Figure.

1. Materials price.

2. Materials quantity.

3. Net materials variance.

4. Labor rate.

5. Labor efficiency.

6. Net labor variance.