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Standard cost direct material and direct labor variances

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Arrow Industries employs a standard cost system in which direct materials inventory is carried at standard cost. Arrow has established the following standards for the direct costs of one unit of product:
Quantity Price Cost Direct materials 8 pounds $1.80 per pound
$14.40 Direct labor 0.25 hour $8.00 per hour
2.00_ $16.40 During May, Arrow purchased 160,000 pounds of direct materials at a total cost of $304,000.
The total factory wages for May were $42,000, 90 percent of which were for direct labor.
Arrow manufactured 19,000 units of product during May using 142,500 pounds of direct material and 5,000 direct labor hours.

a. Calculate the direct materials price variance for May.
b. Calculate the direct materials quantity variance for May.
c. Calculate the direct labor wage rate variance for May.
d. Calculate the direct labor efficiency variance for May.

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Solution Summary

Response is much more than the answer (as is typical with Brainmass!) -- a discussion of 233 words in everyday language guides you through "the pattern" across all the variances so you can learn it quickly and make fewer mistakes.