(solution) Rusty's Bakery has the following standards for one unit of

(solution) Rusty's Bakery has the following standards for one unit of

Rusty?s Bakery has the following standards for one unit of bread product:s

Direct material

Quantity: 7 pounds per unit

Price per pound: $10 per pound

Direct labor

Quantity: 3 hours per unit

Rate per hour: $18 per hour

Actual costs incurred in the production of 2,800 units were as follows:

Direct material: $195,350 ($10.50 per pound)

Direct labor: $392,750 ($17.50 per hour)

All materials purchased were consumed during the period.

Calculate the direct-material price and quantity variances, and the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.

Direct Material Price Variance
Direct Material Price Variance = (Actual Quantity * Actual Price ) (Actual Quantity * Standard price)
Actual Quantity 18604.76 Actual Price $ 10.50 Standard Price $…