Reference no: EM132618294

The standards for one carton of Flavor Rite are:

Direct materials 3.2 lbs. @ $6.00/lb.Direct labor 2.4 hrs. @ $10.00/hr.

During the week ended May 17, the following activity took place:

• 4,800 lbs. of raw material were purchased for inventory at a cost of $5.60 per pound;
• 1,200 cartons of finished product were produced;
• 4,020 lbs. of raw material were used;
• 3,110 labor hours were worked at a total cost of $26,435.

Problem 1: Calculate each of the following variances:(a.)Raw materials purchase price variance.(b.)Raw materials usage variance.(c.)Direct labor rate variance. (d.)Direct labor efficiency variance.(e.)Explain the factors that most likely caused the variances computed above.