Ayayai, Inc. manufactures one product called tybos. The company uses a standard cost system and...
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Ayayai, Inc. manufactures one product called tybos. The company uses a standard cost system and sells each tybo for $8. At the starto monthly production, Ayayai estimated 9,510 tybos would be produced in March. Ayayai has established the following material and labor standards to produce one tybo: Standard Quantity Standard Price Direct materials 2.5 pounds $3 per pound Direct labor 0.6 hours $10 per hour During March 2022, the following activity was recorded by the company relating to the production of tybos: 1. 2. The company produced 9,010 units during the month. A total of 24,100 pounds of materials were purchased at a cost of $66,275. A total of 24,100 pounds of materials were used in production. 5,100 hours of labor were incurred during the month at a total wage cost of $56,100. 3. 4. Calculate the following variances for March for Ayayai, Inc. Identify whether each variance is favorable or unfavorable. ) (a) Materials Price Variance $ 1 Favorable (b) Materials Quantity Variance $ Unfavorable (c) Labor Price Variance $ Unfavorable (d) Labor Quantity Variance $ $ Favorable
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