(DM & DL variances) 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 One Unit |
Actual Usage for July |
|
|
Direct material |
4.8 gallons @ $3 per gallon |
18,350 gallons |
|
Direct 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.