The following direct materials and direct labor data pertain to the operations of Morgan Manufacturing Company for the month of August.

Instructions
(a) Compute the total, price, and quantity variances for materials and labor.
(b) Provide two possible explanations for each of the unfavorable variances calculated above, and suggest where responsibility for the unfavorable result might beplaced.

Transcribed Image Text:

Costs Quantities Actual labor rate $13 per hour Actual hours incurreed and used 4,200 hours Actual materials price $128 perctual quantity of materials purchased and used 1,225 tons Standard labor rate Standard materials price $130 per onStandard quantity of $12 per hour Standard hours used 4,30 ours materials used 1,200 tons