Lionaire,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: 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

Lionaire,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:  Determine the direct materials price and quantity variances and the direct labor rate and efficiency variances.Indicate whether each variance is favorable or unfavorable.

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The Answer of Lionaire,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:  Determine the direct materials price and quantity variances and the direct labor rate and efficiency variances.Indicate whether each variance is favorable or unfavorable.