Variance analysis, material and labor The following information is available for Mandalay Company:
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ACTUAL |
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Materials: |
12,000 pounds purchased at $2.50 per pound; |
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used 10,500 pounds |
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Direct labor: |
1,800 hours at $12 per hour |
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Units produced: |
500 |
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STANDARD |
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Materials: |
20 pounds per unit at a price of $2.20 per pound |
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Direct labor: |
4 hours per unit at a wage rate of $10 per hour |
Required
(a)Determine the material price variance based on the quantity of materials purchased.
(b)Determine the material quantity variance.
(c)Determine the direct labor rate variance.
(d)Determine the direct labor efficiency variance.