Fine Lumber Inc. mills and finishes furniture kits. A certain kit requires the following:
Direct materials standard2 square yards at $13.50 per yard
Direct manufacturing labor standard1.5 hours at $20.00 per hour
During the third quarter, the company made 1,500 kits and used 3,150 square yards of wood costing $42,600. Direct labor totaled 2,100 hours for $46,150.
Required:
a.Compute the direct materials price and efficiency variances for the quarter.
b.Compute the direct manufacturing labor price and efficiency variances for the quarter.

Question

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The Answer of Fine Lumber Inc. mills and finishes furniture kits. A certain kit requires the following:
Direct materials standard2 square yards at $13.50 per yard
Direct manufacturing labor standard1.5 hours at $20.00 per hour
During the third quarter, the company made 1,500 kits and used 3,150 square yards of wood costing $42,600. Direct labor totaled 2,100 hours for $46,150.
Required:
a.Compute the direct materials price and efficiency variances for the quarter.
b.Compute the direct manufacturing labor price and efficiency variances for the quarter.