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| Direct materials (14 pounds @ $4 per pound) | $ 56 |
| Direct labor (2 hours @ $15 per hour) | 30 |
During May the company incurred the following actual costs to produce 8,600 units.
| Direct materials (123,700 pounds @ $3.80 per pound) | $ 470,060 |
| Direct labor (21,900 hours @ $15.10 per hour) | 330,690 |
AR = Actual Rate
SR = Standard Rate
AQ = Actual Quantity
SQ = Standard Quantity
AP = Actual Price
SP = Standard Price
(1) Compute the direct materials price and quantity variances.
(2) Compute the direct labor rate variance and the direct labor efficiency variance.
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