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Winners Trophy Company produces trophies. The company's direct materials standards for it's deluxe trophy include 1 pound of metal and $0.45 per ounce of wood for the base.Standard prices for the year were $3 per pound of metal and $0.45 per ounce of wood.Direct labor standards for the deluxe trophy specify 0.2 hour of direct labor in the Molding Department and 0.4 hour in the trimming/ finishing department.Standard direct labor rates are $20th per hour in the Molding Department and $18.00 per hour in the trimming/finishing department. During January , the company made 16,400 deluxe trophies. actual production data follow.
Direct Materials:
Metal 16,640 lbs @2.95 per lbs
Wood 164,400 of @0.48 per oz
Direct Labor:
Molding 3400 hrs @ 19.80 per hr
trimming/ finishing 6540 @ 18.10 per he
1. compute the Direct Materials price and quantity variances for metal and wood.
2. compute the Direct labor rate and efficiency variances for the Molding and trimming/ finishing departments
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