during may joliet fabrics corporation manufactured 500 units of a special multilayer 492223

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.