Problem 3: Variance Analysis Our company had the following data regarding direct materials and direct labor usage Direct Materials Purchased 65960 feet at a cost of $15 per foot Direct Materials Used 65400 feet Direct Labor Used 97900 hours at a rate of $14 per hour Actual units produced 32700 units The standards set by our company include the following: (NEW Problem INFORMATION!!) this year: Direct materials 2 feet at a cost of $17 per foot Direct labor 3 hours used per unit at a cost of $13 per hour Overhead 80% of direct labor cost Calculate the direct material and direct labor variances and then comment on the results. Direct Material Price Variance: Direct Material Usage Variance: SHOW AND CLEARLY LABEL ALL WORK

Direct Materials Purchased 65960 feet at a cost of $15 per foot Direct Materials Used 65400 feet Direct Labor Used 97900 hours at a rate of \$14 per hour Actual units produced 32700 units The standards set bv our comnanu inatuda. .h. r......... Calculate the direct material and direct labor variances and then comment on the results. Direct Material Price Variance: SHOW ANC Direct Material Usage Variance