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Home Company manufactures tables with vinyl tops. The standard material cost for the vinyl user per Type-R table is $7.80 based on six square feet of vinyl at a cost of $1.30 per square foot. A production run of 1,000 tables in January 20XX resulted in usage of 6,400 square feet of vinyl at a cost of $1.20 per square foot, a total cost of $7,680. Raw materials are carried at actual cost.
Compute:
a) Materials quantity variance.
b) Materials price variance.
Hart Company's labor standards call for 500 direct labor hours to produce 250 units of product. During October the company worked 625 direct labor hours and produced 300 units. The standard hours allowed for October would be:
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