Reference no: EM132541825

The Cat's Meow manufactures gourmet cat food. During the month, it manufactured 5,000 cans of tuna, using 0.10 hours of direct labor per can at a rate of $8.00 per hour.

The materials and labor standards for manufacturing the cans of tuna are as follows:

Direct materials (1 pound of tuna @ $0.50 per pound) $0.50

Direct materials (1 can @ $0.35) 0.35

Direct labor (0.20 hour @ $7.00) 1.40

The company actually used 4,900 pounds of tuna at a price of $0.65 per pound. It also purchased 5,000 cans at a price of $0.45 per can.

Question A. Determine the total materials price variance and whether it is favorable or unfavorable.

Question B. Determine the materials usage variance for tuna and whether it is favorable or unfavorable.

Question C. Determine the labor rate variance and whether it is favorable or unfavorable.