Reference no: EM132440804

Question - Pillow Talk manufactures luxury down bed pillows. Each pillow requires 3 .9 pounds of down and takes 0.25 hours of direct labor. The standard cost of the down used is $6.50 per pound, and the standard labor cost is $12 per hour. In November, Pillow Talk purchased and used 25,000 pounds of down for $157,500. It manufactured 6,200 pillows. Payroll reported a total of 1,520 direct labor hours at a cost of $17,936.

Required -

(a) Compute the materials price and quantity variances and indicate whether the variances are favorable or unfavorable.

(b) Compute the labor price and quantity variances and indicate whether the variances are favorable or unfavorable.