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Problem
Wilson's Winter Woolens manufactures jackets and other wool clothing. A certain designed ski parka requires the following:
Direct materials standard: 2 square yards at $13.50 per yard
Direct manufacturing labor standard: 1.5 hours at $20.00 per hour
During the third quarter, the company made 1,500 parkas and used 3,150 square yards of fabric costing $39,375. Direct labor totaled 2,100 hours for $45,150.
Required:
a. Compute the direct materials price and efficiency variances for the quarter.
b. Compute the direct manufacturing labor price and efficiency variances for the quarter.
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