The following direct materials and direct labor data pertain to the operations of Laurel Company for the month of August.

Instructions
(a) Compute the total, price, and quantity variances for materials and labor.
(b) Provide two possible explanations for each of the unfavorable variances calculated above, and suggest where responsibility for the unfavorable result might beplaced.

Transcribed Image Text:

Costs Quantities Actual labor rate $13 per hour $128 per torn $12.50 per hou Actual hours incurred and used 4,150 hours Actual materials price Actual quantity of materials purchased and used 1,220 tons Standard hours used 4,300 hours Standard labor rate Standard materials price $130 per ton Standard quantity of materials used 1,200 tons