PLEASE LABLE AND SHOW ALL WORK IN THE MOST BASIC WAY POSSIBLE

Problem 3

Salt-of-the-Earth Brick Company makes fired clay bricks for construction. The company uses a standard costing system that calls for 2.75 pounds of clay at $.20 per pound for each brick. The standard cost for labor is .075 hour at $32 per hour for each brick. In August, Salt-of-the-Earth anticipates production to be at a level of 200,000 bricks. During August, Salt-of-the-Earth manufactured 201,000 bricks. The company purchased 553,000 pounds of clay at a cost of $132,720. The cost of direct labor was $485,060 for 15,350 hours.

Instructions

a.	Compute the total material variance, the materials price and quantity variances and indicate whether the variances are favorable or unfavorable.
b.	Compute the total labor variance, the labor price and quantity variances and indicate whether the variances are favorable or unfavorable.