Maki, IncManufactures a Product That Has the Following Standard Costs

Essay

Maki, Inc.manufactures a product that has the following standard costs: The following information pertains to July: Direct material purchased: 42,500 yards at $2.78 per yard, or $118,150 Direct material used: 36,000 yards Direct labor: 7,500 hours at $18.30 per hour, or $137,250 Actual completed production: 1,050 units Use the information to compute the following variances: Required: Calculate the direct-material price and quantity variances, and the direct-labor rate and efficiency variances.Indicate whether each variance is favorable or unfavorable.