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Problem - Direct materials and direct labor variances - At the beginning of June, Marshall Printing Company budgeted 16,000 books to be printed in June at standard direct materials and direct labor costs as follows:
Direct materials $24,000
Direct labor 8,000
Total $32,000
The standard materials price is $0.75 per pound. The standard direct labor rate is $12.50 per hour. At the end of June, the actual direct materials and direct labor costs were as follows:
Actual direct materials $21,300
Actual direct labor 6,800
Total $28,100
There were no direct materials price or direct labor rate variances for June. In addition, assume no changes in the direct materials inventory balances in June. Marshall Printing Company actually produced 14,000 units during June.
Required - Determine the direct materials quantity and direct labor time variances.
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