Unformatted text preview: $15.00 = $585,000 Total standard production costs $643,500 2) Variances: a) Directmaterial price variance = (PQ x AP) (PQ x SP) = 25,000 x $2.60  25,000 x $2.50 = $2,500 Unfavorable b) Directmaterial quantity variance = (AQ x SP)(SQ* x SP) = 23,100 x $2.50  23,400 x $2.50 = (750) Favorable * SQ = 7,800 units x 3 lbs per unit = 23,400 lbs. c) Directlabor rate variance = (AH x AR)(AH x SR) = 40,100 x $14.60  40,100 x $15.00 = (16,040) Favorable d) Directlabor efficiency variance = (AH x SR)(SH* x SR) = 40,100 x $15.00  39,000 x $15.00 = 16,500 Unfavorable * SH = 7,800 units x 5 hrs per unit = 39,000 hrs....
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 Spring '12
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 Variance, Trigraph, 7,800 Units

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