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    Compute the total, price, and quantity variances for materials used and labor. Provide two possible explanations for each of the unfavorable variances calculated above, and suggest where responsibility for the unfavorable result might be placed.

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    The following direct materials and direct labor data pertain to the operations of Batista Manufacturing Company for the month of August.

    Costs Quantities
    Actual labor rate $13 per hour Actual hours incurred and used 4,250 hours
    Actual materials Actual quantity of materials
    price $128 per ton purchased and used 1,250 tons
    Standard
    materials price $130 per ton Standard quantity of
    materials used 1,200 tons

    Instructions:

    a. Compute the total, price, and quantity variances for materials used and labor.
    b. Provide two possible explanations for each of the unfavorable variances calculated above, and suggest where responsibility for the unfavorable result might be placed.

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    https://brainmass.com/business/labour-management-and-relations/79623

    Solution Summary

    Notes and computations in Excel.

    $2.19

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