Answer:
Results are below.
Step-by-step explanation:
To calculate the direct material rate and quantity variance, we need to use the following formula:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (0.32 - 0.3)*80,000
Direct material price variance= $1,600 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (7*4,600 - 40,250)*0.32
Direct material quantity variance= $2,576 unfavorable
To calculate the direct labor efficiency and rate variances, we need to use the following formulas:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (1.2*4,600 - 5,920)*7.2
Direct labor time (efficiency) variance= $2,880 unfavorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (7.2 - 7.9)*5,920
Direct labor rate variance= $4,144 unfavorable
Actual rate= 46,768/5,920= $7.9