During April, Dryden Company's material purchases amounted to 8,500 pounds at a price of $7.70 per pound. Actual costs incurred in the production of 1,700 units were as follows:
|
| Direct labor: |
$ |
134,655 |
($19.10 per hour) |
| Direct material: |
$ |
45,430 |
($7.70 per pound) |
|
| The standards for one unit of Dryden Company's product are as follows: |
| Direct Labor: |
Direct Material: |
| Quantity, 4 hours per unit |
Quantity, 3 pounds per unit |
| Rate, $19.00 per hour |
Price, $7.40 per pound |
|
| Required: |
|
Compute the direct-material price and quantity variances, the direct-material purchase price variance, and the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.
|