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During the most recent month, the following activity was recorded:
Seventeen thousand five hundred pounds of material were purchased at a cost of $2.20 per pound.
All of the material purchased was used to produce 2,500 units of Zoom.
475 hours of direct labor time were recorded at a total labor cost of $5,938.
1. Compute the materials price and quantity variances for the month.
2. Compute the labor rate and efficiency variances for the month.
(For all requirements, Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Input all amounts as positive values. Round your intermediate calculations to the nearest whole dollar.)
1.Materials price variance?
Materials quantity variance?
2.Labor rate variance?
Labor efficiency variance?
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