Question: The following standards have been established for a raw material used to make product I92: Standard quantity of the material per unit of output 3
The following standards have been established for a raw material used to make product I92:
| Standard quantity of the material per unit of output | 3 pounds |
| Standard price of the material | $4.50 per pound |
| Standard hours of labor per unit of output | 2 hours |
| Standard rate of the labor per hour | $11 per hour |
The following data pretain to a recent month's operations:
| Actual material purchased | 6,800 pounds |
| Actual cost of material purchased | $31,620 |
| Actual material used in production | 6,800 pounds |
| Actual output | 2,300 units of product I92 |
| Actual labor used | 4,500 hours |
| Actual total labor cost | $49,050 |
Required:
- What is the materials price variance for the month?
- What is the materials quantity variance for the month?
- What is the labor rate variance for the month?
- What is the labor efficiency variance for the month?
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