Assume Davis has created a standard cost card for each job. Standard direct materials include 14 software packages at a cost of $900 per package. Standard direct labor costs per job include 90 hours at $120 per hour. Davis plans on completing 12 jobs during March 2013.

Actual direct materials costs for March included 90 software packages at a total cost of $81,450. Actual direct labor costs included 100 hours per job at an average rate of $125 per hour. Davis completed all 12 jobs in March.

Requirements

1. Calculate direct materials cost and efficiency variances.

2. Calculate direct labor cost and efficiency variances.