Compute the labor rate and efficiency variances

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Reference no: EM131140095

Problem 1:-


Standard Quantity or Hours

Standard Price or Rate


Direct materials

6.8 pounds

$ 2.90 per pound


Direct labor

0.2 hours

$ 9 per hour


During the most recent month, the following activity was recorded:

a.

15,100 pounds of material were purchased at a cost of $2.60 per pound.

b.

All of the material purchased was used to produce 2,000 units of Zoom.

c.

300 hours of direct labor time were recorded at a total labor cost of $3,300.


Required:
1. Compute the materials price and quantity variances for the month.
2. Compute the labor rate and efficiency variances for the month.

Reference no: EM131140095

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