A. Calculate GMCs Material Price Variance and indicate whether it is favorable or unfavorable.

B. Calculate GMCs Material Usage Variance and indicate whether it is favorable or unfavorable.

C. Calculate GMCs Labor Rate Variance and indicate whether it is favorable or unfavorable.

D. Calculate GMCs Labor Efficiency Variance and indicate whether it is favorable or unfavorable

E. Evaluate the cost variances in Part A to Part D. Identify any significant cost variances (calculate significant cost variance for each of the costs variance calculated in Part A to Part D), who is responsible for those significant cost variance(s), and one possible cause for each of the significant cost variance(s).

Question 6 6. Georgia Manufacturing Company (GMC) has developed the following standards for one of its products: STANDARD VARIABLE COST CARD ONE UNIT OF PRODUCT Direct materials: 6 meters @ $4.50 per meter Direct labor : 2.5 hours @ $5 per hour The company records materials price variances at the time of purchase. The following activities occurred during the month of April: Materials purchased 14,000 meters costing $57,750 Materials used 12,500 meters Units produced 2,000 units Direct labor 4,500 hours costing $24,300