Question 19 (8 points)
ABC Company produces a chair that requires 5 yds. of material per unit. The standard price of one yard of material is
$7.50. During the month, 8,500 chairs were manufactured, using 43,600 yards at a cost of $7.55 per yard. Determine
the (a) price variance, (b) quantity variance, and (c) cost variance. Also indicate whether it's favorable or unfavorable.
For the cost variance, work it out and show the actual and standard budget difference. (Show all work).
Question 20 (6 points)
XYZ Company produces lamps that require 2.25 standard hours per unit at an hourly rate of $15.00 per hour. If 7,700
units required 19,250 hours at an hourly rate of $14.90 per hour, what is the direct labor (a) rate variance, (b) time
variance, and (c) cost variance? Also indicate whether it's favorable or unfavorable. (Show all your work).