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E11-6 The following direct materials and direct labor data pertain to the operations of
Batista Manufacturing Company for the month of August.

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    Compute the total, price, and quantity variances for materials and labor.
    The following direct materials and direct labor data pertain to the operations of
    Batista Manufacturing Company for the month of August.
    Costs Quantities
    Actual labor rate $13 per hour Actual hours incurred
    and used 4,250 hours
    Actual materials price $128 per ton Actual quantity of
    materials purchased
    and used 1,250 tons
    Standard labor rate $12 per hour Standard hours used 4,300 hours
    Standard materials price $130 per ton Standard quantity of
    materials used 1,200 tons
    Compute materials price and
    quantity variances.
    (SO 4)
    Compute labor price and
    quantity variances.
    (SO 4)
    Compute labor quantity variance.
    (SO 3, 4)
    Compute materials and labor
    variances.
    (SO 4)
    Compute the materials and
    labor variances and list reasons
    for unfavorable variances.
    (SO 4, 6)
    Instructions
    (a) Compute the total, price, and quantity variances for materials and labor.
    (b) Provide two possible explanations for each of the unfavorable variances calculated
    above, and suggest where responsibility for the unfavorable result might be placed.

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