Calculations of Materials & Labor Variances
Prado Corporation manufactures and sells a single product. The company uses a standard cost system. The standard cost per unit of product follows: Materials - 1 lb plastic@$3.00 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3.00 Direct labor- 1.6 hr@$10.00 . . . . . . . . . . . . . . . . . . . . . .