Reference no: EM131730169

Calculation of Materials and Labor Variances

Fritz Corp. manufactures and sells a single product. The company uses a standard cost system. The standard cost per unit of product follows:

The charges to the manufacturing department for November, when 5,000 units were produced, follow:

The Purchasing department normally buys about the same quantity as is used in production during a month. In November, 5,500 lb were purchased at a price of $2.90 per pound.

Required:

Calculate the following from standard costs for the data given.

Use "F" and "U" to indicate favorable and unfavorable variances. Enter all amounts as positive numbers.

1. Materials quantity variance. $ SelectFUItem 2

2. Materials purchase price variance (at time of purchase). $ SelectFUItem 4

3. Labor efficiency variance. $ SelectFUItem 6

4. Labor rate variance. $ SelectFUItem 8