B E 20 63 83 9 Problem 1 D 10 (18 points ) = (3 points each) 11 Use the following information to calculate the variances: 12 13 Standard: 14 DM (4 pounds @ $5 per pound) $ 15 DL (3 hours @ $21 per hour) $ 16 Standard prime cost per unit $ 17 18 Actual Results: 19 Units Produced 1,000 20 Materials purchased 5,000 pounds @ 5.20 per pound 21 Materials used 6,000 pounds 22 DL 3,200 hours @ $20 per hour 23 24 25 SHOW YOUR WORK and be sure to mark if it is Favorable or Unfavorable! 26 A. Material Price Variance = (AP-SP)AQ 27 28 30 31 32 B. Material Usage (Quantity) Variance 33 = (AQ - SQ)SP B 37 38 C. Total Material Variance 39 40 MPV + MUV 41 42 43 = (AR - SRAH 44 D. Labor Rate Variance 45 46 47 48 49 50 = (AH-SH)SR 51 E. Labor Efficiency Variance 52 53 54 55 56 57 58 F. Total Labor Variance 59 60 61 62 LRV + LEV