Menounos Manufacturing Co. uses standard costs. Standard costs and actual costs for direct materials and direct labor for the manufacture of 3,000 units during 20Y6 were as follows:

Each unit requires 2.5 hours of direct labor.

a. Compute the direct materials price variance, direct materials quantity variance, and total direct materials cost variance.
Present your answer using the format shown in Exhibit 6.

b. Compute the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Present your answer using the format shown in Exhibit 7.

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Direct materials Direct labor Standard Costs 18,000 lbs. at $4.50 per lb. 7,500 hours at $12.00 per hr. Actual Costs 18,500 lbs. at $4.35 per lb. 7,420 hours at $12.30 per hr.