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Question: e10 2a material and labor variances the following actual...

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E10 - 2A: Material and Labor Variances. The following actual and standard cost data for direct material and direct labor relate to the production of 2,000 units of a product:

                                                                                    Actual Costs Standard Costs

Direct material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,900 lb. @ $5.30 4,000 lb. @ $5.10

Direct labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,200 hrs. @ $8.40           6,000 hrs. @ $8.70

Determine the following variances:

a. Materials price

b. Materials efficiency

c. Labor rate

d. Labor efficiency

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