inglenook makes a product with the following standard costs: std quantity std pricestd cost or hoursor rateper unit direct materials ( in pounds)8.2$7.00 $57.40 direct labor (in hours)0.4$20.00 $8.00 variable overhead0.4$2.00 $0.80 total standard cost per unit$66.20 the company budgeted for production of 2,500 units in june, but actual production was 2,550 units. the company used 19,750 pounds of direct material and 1,040 direct labor-hours to produce this output. the company purchased 21,000 pounds of the direct material at $6.60 per pound. the actual direct labor rate was $19.50 per hour and the actual variable overhead rate was $1.80 per hour. units the company applies variable overhead on the basis of direct labor-hours. the direct materials purchases variance is computed when the materials are purchased. a.calculate the materials price and quantity variances for june. b.calculate the labor rate and efficiency variances for june.
