Compute the labor efficiency variance-labor rate variance

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Reference no: EM131212807

The Stewart company reported the following results concerning this product in August. Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 9.3 pounds $8.00 per pound $74.40 Direct labor 0.4 hours $19.00 per hour $7.60 Originally budgeted output 3,000 units Actual output 3,100 units Raw materials used in production 30,370 pounds Purchases of raw materials 33,900 pounds Actual direct labor-hours 1,340 hours Actual cost of raw materials purchases $264,420 Actual direct labor cost $27,872 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. Required: a. Compute the materials quantity variance. b. Compute the materials price variance. c. Compute the labor efficiency variance. d. Compute the labor rate variance.

Reference no: EM131212807

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