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3. The following data is given for the XYZ Company:
Budgeted production 25,000 units
Actual Production 26,000 units
Materials:
Standard price per ounce $5.50
Standard ounces per completed unit 7
Actual ounces purchased and used in production 250,000
Actual price paid for materials $1,500,000
Labor:
Standard Hourly Labor Rate $20 per hour
Standard Hours allowed per completed Unit
Actual labor hours works 200,000
Actual total labor costs $4,500,000
Overhead:
Actual and budgeted fixed overhead $1,000,000
Standard variable overhead rate $25.00 per standard labor hour
Actual Variable overhead costs $4,500,000
Overhead is applied on standard labor hours.
a.What is the direct materials price variance?
b.The direct material quantity variance is:
4. The following data relate to direct labor costs for the current period:
Standard Costs 10,000 hours at $6.00
Actual Costs 9,000 hours at $7.00
What is the direct labor rate variance?
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