cornerstones 3rd eddition by Hansen, Don R

problem #2

Sparingly Manufacturing has developled the following standards for one of its products.

STANDARD VARIABLE COST CARD (One Unit of Product)

Material: 5yards x $6 per yard $30.00

Direct labor: 2hours x $8 per hour 16.00

Variable manufacturing overhead: 2 hours x $5 per hour 10.00

Total standard variable cost per unit 56.00

The company records materials price variances at the time of purchase.

The following activity occurred during the month of December:

Materials purchased: 5,200 yards costing $29,900

Materials used: 4,750 yards

Units produced: 1,000 units

Direct labor: 2,100 hours costing $17,850

Required:

a. calculate the direct materials price variance.

b. calculate the direct materials usage variance.

c. calculate the direct labor rate variance.

d. calculate the direct labor efficiency variance.

thank you in advance for your help.