Reference no: EM132546537

During June HASF company material purchases amounted to 5,000 pounds at a price of 7 per pound. Actual costs incurred in the production of 5,000 units were as follows,

Total direct labor cost 50,000 @10 per hour

Cost of Material used 35,000

The standards for one units of company product are as follows.

Direct labor 1.5 hour required for one unit        Rate 12 per hour

direct material 2 pounds of Material required for one unit  price 10 per pound

Question 1: Compute the following

1. Material variance
2. Material quantity variance
3. Material price variance
4. Labor variance
5. Labor rate variance
6. Labor hour variance

Question 2: Summarize the variance that you computed in 1 above by showing the net overall favorable or unfavorable variance for the month. What impact did this figure have on the company income statement