Penny Worth Band Uniforms uses a standard costing system. Thestandard material and labor costs for producing a marching band hatare as follows:
| Materials (0.90 yards × $11.40) | | $10.26 | |
| Direct labor (1.20 hours × $13.80) | | $16.56 | |
During May, the company produced 3,340 band hats; 3,870 yards ofmaterial were purchased for $41,022, and 3,050 yards of materialwere used in production. Also during May, 4,240 direct labor hourswere worked at a cost of $59,360. Calculate material price andquantity variances and labor rate and efficiency variances.Indicate whether the variances are favorable or unfavorable.
Material price variance $ _______ (favorable or unfavorable)
Material Quantity variance $ _______ (favorable orunfavorable)
LAbor rate variance $ _______ (favorable or unfavorable)
Labor efficiency variance $ _______ (favorable orunfavorable)
