Reference no: EM132967300
Question: Ravena Labs., Inc. makes a single product which has the following standards:
Direct materials: 2.5 ounces at $20 per ounce Direct labor: 1.4 hours at $12.50 per hour
• 3,750 units of compound were produced during the month.
• There was no beginning direct materials inventory.
• Direct materials purchased: 12,000 ounces for $225,000.
• The ending direct materials inventory was 2,000 ounces.
• Direct labor-hours worked: 5,600 hours at a cost of $67,200.
Show all the calculations
1. Compute the materials price variance for October
2. Compute the materials quantity variance for October
3. Compute the labor efficiency variance for October