Cost Accounting: Chapter 8 Part IV Computing materials and labor variances Wonderdand, Inc, has a budgeted normal monthly capacity of 20,000 labor bours with& standard production of 10,000 units at this capacity. Wonderiand reoords the materiais price varience whe the materials are used. Standard costs are as folows Labor $15 per hoar During Mareh, 19,500 actual labor hours cost $282,750, and 9,500 units were producod wing 29,200 pounds of materials at a cost of $1.10 por pound 1. Compute the materials cost variances and label ench as favorable or unfavorable. Pounds Unit Cost Amount Actual quantity us.d. Actual quantity used. Materials price variance. Actual quantity used. Standard quantity allowed.... Materials quantity variance. Actual S Standard Standard S Standard 2. Computee labor cost variances and label each as favorable or unfavorable. Time Rate Amount Actual S Standard Actual hours worked. Actual hours worked Labor rate variane Actual hours worked.. Standard hours allowed.. Labor efficiency variance. Standard Standard 3. Prepare the same variance analysis as above, using the diagram format as ilhustrated in Figure 8-4 of the text