Riggins, Inc. manufactures one product called tybos. The company uses a standard cost system and...
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Riggins, Inc. manufactures one product called tybos. The company uses a standard cost system and sells each tybo for $8. At the start of monthly production, Riggins estimated 6,400 tybos would be produced in March. Riggins 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 2012, the following activity was recorded by the company relating to the production of tybos: 1. The company produced 6,000 units during the month. 2. A total of 16,000 pounds of materials were purchased at a cost of $44,000. 3. A total of 16,000 pounds of materials were used in production. 4. 3,200 hours of labor were incurred during the month at a total wage cost of $35,200. Instructions Calculate the following variances for March for Riggins, Inc. (a) Materials price variance (b) Materials quantity variance (c) Labor price variance (d) Labor quantity variance
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