Materials and Labor Variances
Deporte Company produces singlecolored tshirts. Materials for the shirts are dyed in large vats. After dying the materials for a given color, the vats must be cleaned and prepared for the next batch of materials to be colored. The following standards for changeover for a given batch have been established:
Direct materials lbs @ $ $
Direct labor hr @ $
Standard prime cost $
During the year, pounds of material were purchased and used for the changeover activity. There were batches produced, with the following actual prime costs:
Direct materials $
Direct labor $for hrs
Required:
Compute the materials and labor variances associated with the changeover activity, labeling each variance as favorable or unfavorable.
Material Variances
Price variance $fill in the blank
Favorable
Usage variance $fill in the blank
Unfavorable
Labor Variances
Rate variance $fill in the blank
Unfavorable
Efficiency variance $fill in the blank
Favorable
