Under normal conditions, Sarah spends $8.40 per unit ofmaterials, and it will take 3.6 units of material per pair ofshoes. During July, Sole Purpose Shoe Company incurred actualdirect materials costs of $63,810 for 7,090 units of directmaterials in the production of 2,175 pairs of shoes.

Complete the following table, showing the direct materialsvariance relationships for July for Sole Purpose Shoe Company. Ifrequired, round your answers to two decimal places. When enteringvariances, use a negative number for a favorable cost variance

A variance that occurs when the actual cost is less thanstandard cost.

, and a positive number for an unfavorable cost variance

A variance that occurs when the actual cost exceeds the standardcost.

.

Actual Cost								Standard Cost
Actual Quantity	X	Actual Price		Actual Quantity	X	Standard Price		Standard Quantity	X	Standard Price
	X				X
	=				=				=
			selector 1Unfavorable Favorable Unfavorable Direct Materials selector 2Price Time Rate Quantity Cost Price Variance:				selector 3Favorable Unfavorable Favorable Direct Materials selector 4Quantity Price Time Rate Cost Quantity Variance:
					selector 5Favorable Favorable Unfavorable Total Direct Materials selector 6Cost Cost Price Time Quantity Rate Variance:
You are in Column Actual Cost	You are in Column Actual Cost	You are in Column Actual Cost						You are in Column Standard Cost	You are in Column Standard Cost	You are in Column Standard Cost

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Explanation

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Direct Labor

Under normal conditions, Sarah pays her employees $8.50 perhour, and it will take 2.8 hours of labor per pair of shoes. DuringAugust, Sole Purpose Shoe Company incurred actual direct laborcosts of $65,340 for 7,260 hours of direct labor in the productionof 2,100 pairs of shoes.

Complete the following table, showing the direct labor variancerelationships for August for Sole Purpose Shoe Company. Ifrequired, round your answers to two decimal places. When enteringvariances, use a negative number for a favorable variance, and apositive number for an unfavorable variance.

Actual Cost								Standard Cost
Actual Hours	X	Actual Rate		Actual Hours	X	Standard Rate		Standard Hours	X	Standard Rate
	X				X
	=				=				=
			selector 1 Favorable Unfavorable Direct Labor selector 2 Quantity Price Cost Time Rate Variance:				selector 3 Favorable Unfavorable Direct Labor selector 4 Quantity Rate Price Time Cost Variance:
					selector 5 Unfavorable Favorable Total Direct Labor selector 6 Cost Rate Quantity Time Price Variance:
You are in Column Actual Cost	You are in Column Actual Cost	You are in Column Actual Cost