Chapter 10, Problem 10.16MCE

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Boston Industries completes job #842, which has a standard of 840 labor hours at a standard rate of $22.75 per hour. The job was completed in 890 hours, and the average actual labor rate was $23.10 per hour. What is the labor efficiency (quantity) variance? (A negative number indicates a favorable variance and a positive number indicates an unfavorable variance.)

Triton Textiles Ltd. reported that the actual cost of direct materials is $62.40 per yard, while the standard cost per yard is $60.00. During the current period,3,500 yards were used in production. What is the direct materials price variance?

Can you provide the accurate answer to this financial accounting question using correct methods?

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