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Question - Whispering Winds Manufacturing, which produces a single product, has prepared the following standard cost sheet for one unit of the product.
Direct materials (6 pounds at $2 per pound) $12
Direct labor (2 hours at $12 per hour) $24
During the month of April, the company manufactures 470 units and incurs the following actual costs.
Direct materials purchased and used (3,040 pounds) $6,688
Direct labor (950 hours) $10,925
Required - Compute the total, price, and quantity variances for materials and labor. Identify whether each variance is favorable or unfavorable.
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