Reference no: EM131806878

Question: Rompola Corporation manufactures futons with the following standard costs per unit:

Direct materials 80 yards @ $2.00 per yard

Direct labor 20 hours @ $20.00 per hour

The actual results for the year were as follows:

Direct materials 120,000 yards purchased at a cost of $264,000; 118,000 yards used

Direct labor 32,000 hours worked at a total cost of $604,800

Production 1,500 units

Compute the following variances:

1. Direct materials price variance

2. Direct materials usage variance

3. Direct materials inventory variance

4. Direct labor price variance

5. Direct labor usage variance