Chapter 8, Problem 1PA

(A)

To determine

Direct material variances:

The difference between the actual material cost per unit and the standard material cost per unit for the direct material purchased is known as direct material cost variance. The direct material variance can be classified as follows:

• Direct materials price variance.
• Direct materials quantity variance.

Direct labor variances:

The difference between the actual labor cost in the production and the standard labor cost for actual production is known as direct labor cost variance. The direct labor variance can be classified as follows:

• Labor rate variance.
• Labor time variance.

The standard cost per unit for direct materials, and direct labor.

(B)

To determine

The direct materials price variance.

(C)

To determine

The direct labor rate variance, direct labor time variance, and total direct labor cost variance.