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Lucia Company has set the following standard cost per unit for direct materials and direct labor.
| Direct materials (15 pounds @ $5 per pound) | $ 75 |
| Direct labor (3 hours @ $14 per hour) | 42 |
During May the company incurred the following actual costs to produce 8,600 units.
| Direct materials (133,000 pounds @ $4.80 per pound) | $ 638,400 |
| Direct labor (29,800 hours @ $14.10 per hour) | 420,180 |
AR = Actual Rate
SR = Standard Rate
AQ = Actual Quantity
SQ = Standard Quantity
AP = Actual Price
SP = Standard Price
(1) Compute the direct materials price and quantity variances.
(2) Compute the direct labor rate variance and the direct labor efficiency variance.
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