You have been invited to interview for an internship with an international food manufacturing company. When you arrive for the interview, you are given the following information related to a fictitious chocolatier for the month of June

ACTUAL
Boxes produced	10,000
Direct materials used in production	13,000 lbs
Actual direct material cost	78,000
Actual direct manufacturing labor-hours	2,400
Actual direct manufacturing labor cost	$31,200
STANDARDS
Purchase price of direct materials	$7.00
Materials per box	.90 pounds
Wage rate	$15.00 per hour
Boxes per hour	6

Requirement 1. Calculate the materials efficiency and price variance and the wage and labor efficiency variances for the month of May.

	Actual costs incurred	Actual input qty x Budgeted price	Flexible budget
Direct materials	___?___	___?___	___?___
Direct labor	___?___	___?___	___?___

Now compute the variances and label each amount as favorable (F) or unfavorable (U).

The materials efficiency variance is: ___?___

The materials price variance is: ___?___

The labor efficiency variance is: ___?___

The labor price variance is: ___?___