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Chemical, Inc., has set up the following standards per finished unit for direct materials and...

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Accounting

Chemical, Inc., has set up the following standards per finished unit for direct materials and direct manufacturing labor:

Direct materials: 10 lbs. at $3 per lb. = $30.00

Direct manufacturing labor: 0.5 hours at $20 per hour= $10.00

The number of finished units budgeted for March 2020 was 10,000; 9,810 units were actually produced.

Actual results in March 2020 were:

Direct materials: 98,073 lbs used

Direct manufacturing labor: 4,900 total hours at a total cost of $102,900

Assume that there was no beginning inventory of either direct materials or finished units. During the month, materials purchases amounted to 100,000 lbs. at a total cost of $310,000.

Compute the March 2020 price and efficiency variances of direct materials and direct manufacturing labor.

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