Purvis Manufacturing which produces a single product has prepared the following standard cost sheet for one unit of the product. $\begin{array}{ll}
\text { Direct materials (6 pounds at } \$ 2 \text { per pound) } & \$ 12 \
\text { Direct labor }(2 \text { hours at } \$ 12 \text { per hour) } & \$ 24
\end{array}$ During the month of April the company manufactures 300 units and incurs the following actual costs. $\begin{array}{llr}
\text { Direct materials purchased and used (1,850 pounds) } &\$4,070\
\text {Direct labor (620 hours) } &\$7,130\
\end{array}$
Instructions
Compute the total price and quantity variances for materials and labor.

Question

Purvis Manufacturing which produces a single product has prepared the following standard cost sheet for one unit of the product. $\begin{array}{ll}
\text { Direct materials (6 pounds at } \$ 2 \text { per pound) } & \$ 12 \
\text { Direct labor }(2 \text { hours at } \$ 12 \text { per hour) } & \$ 24
\end{array}$ During the month of April the company manufactures 300 units and incurs the following actual costs. $\begin{array}{llr}
  \text { Direct materials purchased and used (1,850 pounds) } &\$4,070\
 \text {Direct labor (620 hours)  } &\$7,130\
\end{array}$
 Instructions
Compute the total price and quantity variances for materials and labor.

Quizplus · Accepted Answer

The Answer of Purvis Manufacturing which produces a single product has prepared the following standard cost sheet for one unit of the product. $\begin{array}{ll}
\text { Direct materials (6 pounds at } \$ 2 \text { per pound) } & \$ 12 \
\text { Direct labor }(2 \text { hours at } \$ 12 \text { per hour) } & \$ 24
\end{array}$ During the month of April the company manufactures 300 units and incurs the following actual costs. $\begin{array}{llr}
  \text { Direct materials purchased and used (1,850 pounds) } &\$4,070\
 \text {Direct labor (620 hours)  } &\$7,130\
\end{array}$
 Instructions
Compute the total price and quantity variances for materials and labor.

Purvis Manufacturing Which Produces a Single Product Has Prepared the Following