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Hernandez Corporation uses a standard cost system and has established the following standards for one...

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Accounting

Hernandez Corporation uses a standard cost system and has established the following standards for one unit of product:
During October, the company purchased 240,000 pounds of material at a total cost of \(\$ 588,000\). The total factory wages for October were \(\$ 49,400\). During October, 21,000 units of product were manufactured using 211,000 pounds of material and 5,200 direct labor hours. Material quantity and price variances are recorded when materials are used.
a. Compute the material quantity and labor efficiency variances.
b. Compute the material price and labor rate variances.
Show whether each of the above variances was either favorable or unfavorable.
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