Compute the materials quantity variance for october

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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

Reference no: EM132967300

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