Reference no: EM133186316

Question - The Rogers Company uses a standard cost accounting system and estimates production for the year to be 60,000 units. At this volume, the company's variable overhead costs are $0.50 per direct labor hour.

The company's single product has a standard cost of $30.00 per unit. Included in the $30.00 is $13.20 for direct materials (3 yards) and $12.00 of direct labor (2 hours). Production information for the month of March follows:

Number of units produced 6,000

Materials purchased (18,500 yards) $88,800

Materials used in production (yards) 18,500

Direct labor cost incurred ($6.50/hour) $75,400

Required -

a. Compute the direct material price variance.

b. Compute the direct material efficiency variance.

c. Compute the direct labor price (rate) variance.

d. Compute the direct labor efficiency variance.