Reference no: EM132099913

Question - Hyde Company has set the following standards for one unit of product:

Direct material: $36 per unit

Quantity: 4 kg per unit

Price: $9 per kg

Direct labour: $63 per unit

Quantity: 3 hours per unit

Rate: $21 per hour

Actual costs incurred in the production of 2,000 units were as follows:

Direct material: $72,540 ($9.30 per kg)

Direct labour: $115,206 ($21.10 per hour)

Required - Calculate the direct material price and quantity variances and the direct labour rate and efficiency variances. Indicate whether each variance is favourable or unfavourable.