The Alpha Company produces toys for national distribution. Standards for a particular toy are:

Materials: 12 grams per unit at 56 cents per gram.
Labor: 2 hours per unit at $12.75 per hour.

During the month of December, the company produced 1,000 units. Information for the month follows:

Materials: 14,000 grams were purchased and used at a total cost of $7,140.
Labor: 2,500 hours worked at a total cost of $33,000.

a) Calculate Material Price variance.

b) Calculate materials quantity variance.

c) Calculate labor rate variance.

d) Calculate The labor efficiency variance.

Answer rating: 100% (QA)

a Material Price Variance Material Price Variance measures the difference between the actual price paid for materials and the standard price per unit ... View the full answer