Managerial Accounting: P10-44 During May, Joliet Fabrics Corporation manufactured 500 units

Managerial Accounting

10-44 Direct-Material and Direct-Labor Variances
During May, Joliet Fabrics Corporation manufactured 500 units of a special multilayer fabric with the trade name Stylex. The following information from the Stylex production department also pertains to May.
Direct material purchased: 18,000 yards at $1.38 per yard 24,840
Direct material used: 9,500 yards at $1.38 per yard 13,110
Direct labor: 2,100 hours at $9.15 per hour 19,215

The standard prime costs for one unit of Stylex are as follows:
Direct material: 20 yards at $1.35 per yard 27
Direct labor: 4 hours at $9.00 per hour 36
Total standard prime cost per unit of output 63

Required: Compute the following variances for the month of May, indicating whether each variance is favorable or unfavorable.
1. Direct-material price variance.
2. Direct-material quantity variance.
3. Direct-labor rate variance.
4. Direct-labor efficiency variance.
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