Care Craft Manufacturing Has Developed the Following Standards for One

Care Craft Manufacturing has developed the following standards for one of its products: STANDARD VARIABLE COST CARD
One Unit of Product

$\begin{array}{lr}\text { Materials ( } 4 \text { pounds } \times \$ 5 \text { per pound) } & \$ 20.00 \\\text { Direct labor ( } 1 \text { hour } \times \$ 7 \text { per hour) } & 7.00 \\\text { Variable manufacturing overhead ( } 1 \text { hour } \times \$ 4 \text { perhour) }&4.00\\\text { Total standard variable cost per unit }&\$31.00\end{array}$
The company records materials price variances at the time of purchase.
The following activity occurred during the month of December:

$\begin{array}{ll}\text { Materials purchased } & 4,100 \text { pounds costing } \$ 18,800 \\\text { Materials used } & 3,640 \text { pounds } \\\text { Units produced } & 900 \text { units } \\\text { Direct labor } & 1,000 \text { hours costing } \$ 7,800\end{array}$
Required:
a.Calculate the direct materials price variance.
b.Calculate the direct materials usage variance.
c.Calculate the direct labor rate variance.
d.Calculate the direct labor efficiency variance.

Correct Answer:

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