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ABC developed the following standard costs for direct material and direct labor for one of their major projects;
Standard Quantity
Standard Price
Direct Materials
10 kilograms
$5 per kilogram
Direct Labor
0.5 hours
$30 per hour
During 2015, the company produced and sold 100,000 units using 990,000 kilograms of direct materials at an average cost of $4.95 per kilogram, and total direct labor costs of $1,428,000 (51,000 DLH's incurred) Question: Calculate the 2015 price and quantity (efficiency) variances, and total variances, for direct material and direct labor. Show calculations.
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