1.The direct material and direct labor standards for one case of Abby's Ale are:

Direct Materials (5 quarts @ $8 per quart) ........................

$40

Direct Labor (2 hours @ $12 per hour)...........................

24

During the week ended March 31, the following activity took place:

• 3,000 cases of Ale were actually produced.
• 16,000 quarts of raw materials were purchased for inventory at a cost of $8.10 per quart.
• 14,700 quarts of raw material were used.
• 6,300 hours of direct labor were incurred at a cost of $76,860.

Calculate the total dollar amount of each of the following variances (show your work in detail):

a.Raw materials purchase price variance.

b.Raw materials usage variance.

c.Direct labor efficiency variance

d.Direct labor rate variance

Formulas are as follows:

Price/Rate/Spending Variance = (SP-AP) x AQ

Usage/Efficiency Variance = (SQ-AQ) x SP