• Controller Tri Nuygen is analyzing the direct material and direct labor variances for June. The following information comes from the accounting records. The product is a reinforcement bar used in construction.

  Direct material cost for 575,000 lbs of material	$172,500
  Pounds used in production	550,000 lbs
  Direct labor costs for 230,000 hours	$4,140,000
  Units produced	900,000
  The standard cost for one bar is:
  Direct materials: 0.5 lbs at $0.25 per lb
  Direct labor 0.25 hours at $20 per hour

  Required: Calculate (a) the direct-material price variance, the (b) direct-material quantity variance, (c) the direct-labor rate variance, and (d) the direct-labor efficiency variance.

  Compute the following variances for June, and tell if they are favorable or unfavorable.

  Amount Favorable/unfavorable

  
  
• (a) Direct-material price variance ____________________ __________________
• (b) Direct-material quantity variance ____________________ __________________
• (c) Direct-labor rate variance ____________________ __________________

Direct-labor efficiency variance ____________________ __________________