Tao Industries,Inc

Essay

Tao Industries,Inc.developed standard costs for direct material and direct labor.In 2012 Tao estimated the following standard costs for one of their major products,the 50-gallon plastic container.

During August,Tao 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.
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.