A company uses a standard cost system. One of the most popular products is a center that houses electronic units. The per-unit standard costs of the center, assuming a "normal"volume of 1,000 units per month asre as follows;
direct materials, 100 board-feet of wood at $1.30 perfoot................ $130.00
direct labor, 5 hours at $8.00 perhour.............................................. 40.00
manufacturing overhead (applied at $22 perunit)..............................
fixed ($15,000/1,000units of normal production0...........$15.00
variable........................................................................... 7.00 22.00
totalstandard unitcost................................................ $ 192.00
During July, 800 centers were scheduled and produced at thefollowing unit costs:
direct materials, 100 fee at $1.20 perfoot..................................... $132.00
direct labor, 5 1/2 hours at $7.80 perhour.................................... 42.90
manufacturing overhead, $18,480 /800units................................. 23.10
total actual unitcost.................................................................. $198.00
Compute the following cost for the month of July:
1. materials price variance
2. materials quantity variance
3. labor rate variance