Exercise 23-8 Your answer is partially correct. Try again. The following direct

Question

Exercise 23-8 Your answer is partially correct. Try again. The following direct materials and direct labor data pertain to the operations of Laurel Company for the month of August. Costs ctual labor rate Actual materials price Standard labor rate Standard materials price $13 per hour $220 per ton $12.50 per hour 224 per ton Quantities Actual hours incurred and used Actual quantity of materials purchased and used Standard hours used Standard quantity of materials used 4,200 hours 1,600 tons 4,280 hours 1,580 tons Compute the total, price, and quantity variances for materials and labor. Total mater als variance Materials price variance Materials quantity variance Tatal labor variance Labor price variance Labor quantity variance

Explanation / Answer

Total materials variance = (1600*220)-(1580*224)= 1920 Favorable Materials price variance = 1600*(220-224) = 6400 Favorable Materials quantity variance = 224*(1600-1580)= 4480 UnFavorable Total labor variance = (4200*13)-(4280*12.5)= 1100 UnFavorable Labor price variance = 4200*(13-12.5) = 2100 UnFavorable Labor quantity variance = 12.5*(4200-4280)= 1000 Favorable

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