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# Direct Material & Labour Variances

Quicksand Company has set the following standards for one unit of product:

Direct material
Quantity: 6.2 pounds per unit
Price per pound: \$11 per pound
Direct labor
Quantity: 6 hours per unit
Rate per hour: \$23 per hour

Actual costs incurred in the production of 2,800 units were as follows:

Direct material: \$194,350 (\$11.50 per pound)
Direct labor: \$393,750 (\$22.50 per hour)

All materials purchased were consumed during the period.

Required:
Calculate the direct-material price and quantity variances and the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.

#### Solution Preview

Formulas

Direct Material Price Variances = (Standard Cost - Actual Cost) * Actual Quantity
Direct Material Quantity Variances = (Standard Quantity - Actual Quantity) * Standard ...

#### Solution Summary

The solution computes Direct Material & Labour Variances (price, uage, efficiency, rate) for Quicksand Company and provides formula.

\$2.19