Exercise 11-9

Handley Band Uniforms uses a standard costing system. The standard material and labor costs for producing a marching band hat are as follows:

Materials (0.90 yards $11.60) $10.44

Direct labor (1.20 hours $13.40) $16.08

During May, the company produced 3,330 band hats; 4,350 yards of material were purchased for $48,285, and 3,350 yards of material were used in production. Also during May, 4,090 direct labor hours were worked at a cost of $61,350. Calculate material price and quantity variances and labor rate and efficiency variances. Indicate whether the variances are favorable or unfavorable.(Round intermediate calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 125. Enter all variances as a positive number.)

Material Price Variance Material Quantity Variance Labor Rate Variance - Labor Efficiency Variance IT