Question: Materials and labor variances: Standards per Batch Actual Total Materials 1 Pound at $3.50 per Pound 59,000 Pounds Labor. 1.5 Hours at $4.00 per Hour

Materials and labor variances:

	Standards per Batch	Actual Total
Materials	1 Pound at $3.50 per Pound	59,000 Pounds
Labor.	1.5 Hours at $4.00 per Hour	82,000 Hours
Batches Produced		58,000 Batches

The Chocolate Factory presents the following data for September. During the month, the firm purchased 59,000 pounds of materials for $216,500. Wages earned were $330,000.

A. Compute the direct material and direct labor price and efficiency variances.

B. Based on the information for the company, write a short report explaining the cause of the variances that you computed.

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