Tiger, Inc., has developed the following standard cost data based on 60,000 direct labor hours, which is 75% of capacity

During the last period, the company operated at 80% of capacity and produced 128,000 units. Actual costs were:
Direct materials $( 760,000 \quad \$ 1,558,000$ lbs.)
Direct labor (126,000 hrs.) $\quad 1,014,300$
Determine the direct materials price and quantity variances and the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.

Question

Tiger, Inc., has developed the following standard cost data based on 60,000 direct labor hours, which is 75% of capacity
 
During the last period, the company operated at 80% of capacity and produced 128,000 units. Actual costs were:
Direct materials $( 760,000 \quad \$ 1,558,000$ lbs.)
Direct labor (126,000 hrs.) $\quad 1,014,300$ 
Determine the direct materials price and quantity variances and the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.

Quizplus · Accepted Answer

The Answer of Tiger, Inc., has developed the following standard cost data based on 60,000 direct labor hours, which is 75% of capacity
 
During the last period, the company operated at 80% of capacity and produced 128,000 units. Actual costs were:
Direct materials $( 760,000 \quad \$ 1,558,000$ lbs.)
Direct labor (126,000 hrs.) $\quad 1,014,300$ 
Determine the direct materials price and quantity variances and the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.

Tiger, Inc (760,000$1,558,000( 760,000 \quad \$ 1,558,000(760,000$1,558,000 Lbs) Direct Labor (126,000 Hrs

Tiger, Inc $( 760,000 \quad \$ 1,558,000$ Lbs)
Direct Labor (126,000 Hrs