Question: Variance Analysis : A manufacturing company sets standard costs for its product as follows: Direct materials: 4 kilograms per unit at $8 per kilogram Direct

Variance Analysis: A manufacturing company sets standard costs for its product as follows:

Direct materials: 4 kilograms per unit at $8 per kilogram

Direct labor: 2 hours per unit at $20 per hour During the month, the company produced 2,500 units and incurred the following actual costs:

Direct materials: 10,500 kilograms at $9 per kilogram

Direct labor: 5,200 hours at $22 per hour Calculate the direct materials price and quantity variances, as well as the direct labor rate and efficiency variances.

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