Penny Worth Band Uniforms uses a standard costing system. The standard material and labor costs for...

Penny Worth Band Uniforms uses a standard costing system. The standard material and labor costs for producing a marching band hat are as follows:

Materials (0.90 yards × $11.40)		$10.26
Direct labor (1.20 hours × $13.80)		$16.56

During May, the company produced 3,340 band hats; 3,870 yards of material were purchased for $41,022, and 3,050 yards of material were used in production. Also during May, 4,240 direct labor hours were worked at a cost of $59,360. Calculate material price and quantity variances and labor rate and efficiency variances. Indicate whether the variances are favorable or unfavorable.

Material price variance $ _______ (favorable or unfavorable)

Material Quantity variance $ _______ (favorable or unfavorable)

LAbor rate variance $ _______ (favorable or unfavorable)

Labor efficiency variance $ _______ (favorable or unfavorable)

Expert Solution

ekkarill92 answered 3 months ago

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