The following direct materials and direct labor data pertain to the operations of Laurel Company for the month of August.

Costs

Actual labor rate $13 per hour
Actual materials price $128 per ton
Standard labor rate $12.50 per hour
Standard materials price $130 per ton
Quantities

Actual hours incurred and used 4,150 hours
Actual quantity of materials purchased and used 1,220 tons
Standard hours used 4,300 hours
Standard quantity of materials used 1,200 tons
Compute the total, price, and quantity variances for materials and labor.

Total materials variance $The following direct materials and direct labor da The following direct materials and direct labor da
Materials price variance $The following direct materials and direct labor da
Materials quantity variance $The following direct materials and direct labor da
Total labor variance $The following direct materials and direct labor da
Labor price variance $The following direct materials and direct labor da
Labor quantity variance $The following direct materials and direct labor da

Instructions are below.

Explanation:

Giving the following information:

Actual labor rate $13 per hour

Actual materials price $128 per ton

Standard labor rate $12.50 per hour

Standard materials price $130 per ton

Actual hours incurred and used 4,150 hours

The actual quantity of materials purchased and used 1,220 tons

Standard hours used 4,300 hours

The standard quantity of materials used 1,200 tons

1) To calculate the direct material total, price, and quantity variance, we need to use the following formulas:

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (130 - 128)*1,220

Direct material price variance= $2,440 favorable

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (1,200 - 1,220)*130

Direct material quantity variance= $2,600 unfavorable

Total direct material cost variance= 2,440 - 2,600= $160 unfavorable

2) To calculate the direct labor total, time, and rate variance, we need to use the following formulas:

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

Direct labor time (efficiency) variance= (4,300 - 4,150)*12.5

Direct labor time (efficiency) variance= $1,875 favorable

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Direct labor rate variance= (12.5 - 13)*4,150

Direct labor rate variance= $2,075 unfavorable

Total direct labor cost variance= 1,875 - 2,075= $200 unfavorable