Chapter 8, Problem 15E

To determine

Direct Material:

Direct material is the traceable material in a product. It is a part of prime cost. These materials become finished goods after processing.

Direct Labor:

Direct labor is the labor who is directly contributing in production process. It is a part of prime cost.

(1)

To compute: Direct material price and quantity variance.

(2)

To determine

To compute: Direct labor rate and efficiency variance.