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Quicksilver Compnay has set the follwoing standards for one unit of product:
Direct materialQuantity: 6.2 lbs per unitPrice per lb: $11 per lb
Direct LaborQuantity: 6 hrs per unitRate per hr: $23 per hr
Actual costs incurred in the production of 2,800 units were as follows:
Direct material: $194,350 ($11.50 per lb)Direct labor: $393,750 ($22.50 per hr)All Materials purchased were consumed during the period.
Required:Calculate the direct-material price and quantity variances, and the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.
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