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Direct materials 2.00 ounces $ 30.00 per ounce $ 60.00
Direct labor 0.50 hours $ 14.00 per hour 7.00
Var. man. overhead 0.50 hours $ 3.40 per hour 1.70
Total standard cost per unit $ 68.70
During November, the following activity was recorded related to the production of Fludex:
Materials purchased, 10,000 ounces at a cost of $287,000.
There was no beginning inventory of materials; however, at the end of the month, 3,000 ounces of material remained in ending inventory.
The company employs 20 lab technicians to work on the production of Fludex. During November, they each worked an average of 130 hours at an average pay rate of $12.00 per hour.
Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $4,700.
During November, the company produced 3,400 units of Fludex.
Compute the price and quantity variances.
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