Question

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

Costs:
Actual labor rate $12 per hour
Actual materials price $190 per ton
Standard labor rate $11.50 per hour
Standard materials price $193 per ton
Quantities:
Actual hours incurred and used 4,100 hours
Actual quantity of materials purchased and used 1,500 tons
Standard hours used 4,140 hours
Standard quantity of materials used 1,490 tons
Required:
(a) Compute the total, price, and quantity variances for materials and labor.

Answer 1

Total Materials Variance = $2,570 Favorable

Materials Price Variance = $ 4,500 Favorable

Materials Quantity Variance = $ 1,930 Unfavorable

Total Labor Variance = $ 1,590 Unfavorable

Labor Price Variance = $ 2,050 Unfavorable

Labor Quantity Variance = $ 460 Favorable

Step-by-step explanation:

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