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At the beginning of last year, creative productions set direct labor standards of 2 hours at $25 per hour for each product produced. during the year, 1,700 direct labor hours were actually worked at an average cost of $26 per hour. using this information and the applicable information in E6A, calculate the company's direct labor rate and efficiency variances for the year.
This is the information they want you to use from application E6A to help solve this problem:
Creative Productions manufactured and sold 800 products at $10,000 each during the past year. at the beginning of the year, productions had been set at 1,000 products, and direct materials standards had been set at 10 pounds of direct materials at $12 per pound for each product produced. During the year, the company purchased and used 7,900 pounds of direct materials with a cost of $12.02 per pound. Calculate the company's direct materials price and quantity variances for the year.
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