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Price and quantity variances

Total price and quantity variances for materials and labor

Haslett Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product.
Direct materials (8 pounds at $2.75 per pound) $22
Direct labor (3 hours at $16.00 per hour) $48

During the month of April, the company manufactures 231 units and incurs the following actual costs.
Direct materials purchased and used (1,930 pounds) $8,106
Direct labor (700 hours) $10,150

Total materials variance $ Favorable/Unfavorable
Materials price variance $ Unfavorable/Favorable
Materials quantity variance $ Favorable/Unfavorable
Total labor variance $ Favorable/Unfavorable
Labor price variance $ Favorable/Unfavorable
Labor quantity variance $ Favorable/Unfavorable

Compute the total, price, and quantity variances for materials and labor. (Round unit costs to 2 decimal places, e.g. 10.50 and all other computations and final answers to 0 decimal places, e.g. 125.)

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Solution Summary

The solution explains how to calculate price and quantity variances for material and labor