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In July, 2010, Zinger Corp, purchased 20,000 gallons of Numerol for $ 61,000 to use in the production of product #43MR7. During July, Zinger Corp. manufactured 3,900 units of product #43MR7. The following information is available about standard and actual quantities and costs:
Standard for on One unit Actual usage for JulyDirect material 4.8 gallons @$ 3 per gallon 18,350 gallonsDirect labor 20 minutes @$ 9 per DLH 1,290 DLHs @$ 9.02 per DLH
a. compute the material purchase price variance and the material quantity variance.
b. compute the labor rate, labor efficiency, and total labor variance.
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