Starling Manufacturing has developed the following standards for one of its products.

STANDARD VARIABLE COST CARD  
One Unit of Product  
   
Materials: 5 yards ´ $6 per yard $30.00
Direct labor: 2 hours ´ $8 per hour 16.00
Variable manufacturing overhead: 2 hours ´ $5 per hour  10.00
Total standard variable cost per unit $56.00
   
The company records materials price variances at the time of purchase.
   
The following activity occurred during the month of December:
   
Materials purchased: 5,200 yards costing $29,900
Materials used: 4,750 yards
Units produced: 1,000 units
Direct labor: 2,100 hours costing $17,850

Required:

a. Calculate the direct materials price variance.
b. Calculate the direct materials usage variance.
c. Calculate the direct labor rate variance.
d. Calculate the direct labor efficiency variance.

ANS: 

a. $1,300 F           $29,900 – (5,200 ´ $6)
b. $1,500 F           $6 ´ (4,750 – 5,000)
c. $1,050 U          $17,850 – (2,100 ´ $8)
d. $800 U            $8 ´ (2,100 – 2,000)

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