Tatro Industries, Inc., (TII) developed standard costs for direct material and direct labor. In 2005, TII estimated the following standard costs for one of their major products, the 50-gallon plastic container.
Standard quantity Standard price
Direct materials 0.25 pounds $40 per pound
Direct labor 0.03 hours $18 per hour
During August, TII produced and sold 8,000 containers using 1,900 pounds of direct materials at an average cost per pound of $41 and 250 direct labor hours at an average wage of $18.25 per hour. Determine the following variances for August:
Required:
a. Total direct material cost variance is the difference between the actual cost of actual number of units produced
b. Direct material price variance

c. Direct material quantity variance.

d. Total direct labor cost variance.

e. Direct labor rate variance

f. Direct labor efficiency variance