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Direct-material price and quantity variances

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During April, Dryden Company's material purchased amounted to 6,500 pounds at a price of $7.40 per pound. Actual costs incurred in the production of 2,000 units were as follows.
Direct Labor: $118,035 ($18.30 per hour)
Direct material: $31,820 ($7.40 per hour)

The standards for one unit of Dryden Company's products are as follows:
Direct Labor Direct material:
Quantity, 3 hours per unit Quantity, 2 pounds per unit
Rate, 18.00 per hour Price, 7.20 per pound

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

Solution Summary

Your computations are done in a diagram in Excel so you have a template for future problems.