Question 1 - MSU makes blue jean jackets. The standard costs per jacket are as follows:

                                            Budgeted Qty         Budgeted Price

Direct Material                                  .20                              $ 60.00 per yard

Direct Labor                                       .10                              $ 30.00 per hour

MSU produced and sold 10,000 jackets using 1,000 yards of direct materials at a cost of $ 64.00 per yard and 500 hours of direct labor at a wage of $ 30.50 per hour.

What is the direct manufacturing labor efficiency variance? Also, is the variance favorable or unfavorable?

Question 2 - MSU makes blue jean jackets. The standard costs per jacket are as follows:

                                            Budgeted Qty         Budgeted Price

Direct Material                                  .20                              $ 60.00 per yard

Direct Labor                                       .10                              $ 30.00 per hour

MSU produced and sold 10,000 jackets using 1,000 yards of direct materials at a cost of $ 64.00 per yard and 500 hours of direct labor at a wage of $ 30.50 per hour.

What is the direct manufacturing material price variance? Also, is the variance favorable or unfavorable?