800 175 selecting F for favorable U for Solution 1 Silver C

$ 8.00 1.75 selecting F for favorable, U\" for

Solution

1) Silver Crystals Direct Material Price Variance $ 617.00 U $      229.20 F Working: Direct Material Price Variance = (Standard Price - Actual Price ) * Actual Quantity of Materials used Direct Material Price Variance of: Silver = (20.00-21.00)*617 = $   617.00 U Actual Price = Actual Cost/ Actual Quantity used = $       12,957 / 617 = $         21.00 Direct Material Price Variance of: Crystals = (0.25-0.23)*11460 = $   229.20 F Actual Price = Actual Cost/ Actual Quantity used = $   2,635.80 / 11460 = $            0.23 2) Direct Labor Rate Variance $   1,297.50 F Direct Labor Efficiency Variance $   1,500.00 U Working: Direct Labor Rate Variance = (Standard rate - Actual Rate)*Actual labor hours = (10.00-9.50)*2595 = $   1,297.50 F Actual Labor rate = Actual labor cost / Actual Labor hours = $ 24,652.50 /         2,595 = $            9.50 Direct Labor Efficiency Variance = (standard Labor hours - Actual Labor hours)*Standard Labor rate = (2445-2595)*10 = $   1,500.00 U Standard Labor hours = Actual Units produced x Standard Labor hour per unit produced =             1,630 x 1.5 =             2,445