Inventory balances in august

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Reference no: EM13915703

Direct Materials and Direct Labor Variances

At the beginning of August, Cornerstone Printers Company budgeted 26,000 books to be printed in August at standard direct materials and direct labor costs as follows:

Direct materials	$41,600
Direct labor	17,160
Total	$58,760

The standard materials price is $0.40 per pound. The standard direct labor rate is $11.00 per hour. At the end of August, the actual direct materials and direct labor costs were as follows:

Actual direct materials	$37,200
Actual direct labor	15,400
Total	$52,600

There were no direct materials price or direct labor rate variances for August. In addition, assume there were no changes in the direct materials inventory balances in August. Cornerstone Printers Company actually produced 22,600 units during August.

Determine the direct materials quantity variance, direct labor time variance, and the total variance. Enter a favorable variance as a negative amount, and an unfavorable variance as a positive amount.

Direct materials quantity variance	$______	Select Favorable Unfavorable Item 2
Direct labor time variance	_______	Select Favorable Unfavorable Item 4
Total variance	$_______	Select Favorable Unfavorable Item 6

Reference no: EM13915703

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