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Star Band Uniforms uses a standard costing system. The standard material and labor costs for producing a marching band hat are as follows:
Materials (.80 yards x $11.00) .......$8.80Direct labor (1.2 hours x $13.00) .......$15.60
During May, the company produced 3,500 band hats; 4,000 yards of material were purchased for $42,000, and 3,100 yards of material were used in production. Also during May, 4,350 direct labor hours were worked at a cost of $63,075.Calculate material price and quantity variances and labor rate and efficiency variances. Indicate whether the variances are favorable or unfavorable.
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