During May, the following actual activities occurred: Material purchased, 12,000 pounds for $45,600; material used in the production of 2,000 units of product, 13,000 pounds; direct labor, 3,500 hours costing $56,000.
Required:
(1) Compute the following variances:
(a) material quantity variance
(b) labor rate variance
(c) labor efficiency variance
2) Give one possible explanation for each of the 3 variances computed.
O'Malley Company manufactures a single product. The following standards have been developed for it:

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The Answer of During May, the following actual activities occurred: Material purchased, 12,000 pounds for $45,600; material used in the production of 2,000 units of product, 13,000 pounds; direct labor, 3,500 hours costing $56,000.
Required:
(1) Compute the following variances:
(a) material quantity variance
(b) labor rate variance
(c) labor efficiency variance
2) Give one possible explanation for each of the 3 variances computed.
O'Malley Company manufactures a single product. The following standards have been developed for it:

During May, the Following Actual Activities Occurred: Material Purchased, 12,000