Levine Inc., which produces a single product, had prepared the following standard cost sheet for one unit of the product.

Direct materials (8 pounds at $3.30 per pound) $26.40

Direct labor (1 hour at $12.00 per hour) $12.00

During the month of April, the company manufactures 240 units and incurs the following actual costs.

Direct materials purchased and used (2,300 pounds) $8,050

Direct labor (280 hours) $3,304

material price variance (standard price - actual price) * quantity purchased

MPV = (3.30 - 3.50) 2300 = $460 Unfavorable

Material quantity variance = (standard quantity - actual quantity) standard price

MQV = (1920 - 2300) 3.30 = $1254 Unfavorable

Labour price (rate) variance = (Standard rate - actual rate) actual hours

LRV = (12 - 11.8) * 280 = $56 Favorable

Labor hours variance = (standard hours - actual hours) * standard rate

LHV = (240 - 280) * $12 = $480 unfavorable

Explanation:

the complete question:

Levine Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. Direct materials (8 pounds at $3.30 per pound) $26.40 Direct labor (1 hours at $12.00 per hour) $12.00 During the month of April, the company manufactures 240 units and incurs the following actual costs. Direct materials purchased and used (2,300 pounds) $8,050 Direct labor (280 hours) $3,304 Compute the total price, and quantity variances for materials and labor.