Homework answers / question archive /  The Tachanka Company uses standard costing and has established the following direct material and direct labor standards for each unit of the single product it makes:    Direct materials  4 gallons at $8 per gallon Direct labor  1 hour at $16 per hour   During July, the company made 6,000 units of product and incurred the following costs:   Direct materials purchased 26,800 gallons at $8

 The Tachanka Company uses standard costing and has established the following direct material and direct labor standards for each unit of the single product it makes:    Direct materials  4 gallons at $8 per gallon Direct labor  1 hour at $16 per hour   During July, the company made 6,000 units of product and incurred the following costs:   Direct materials purchased 26,800 gallons at $8

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 The Tachanka Company uses standard costing and has established the following direct material and direct labor standards for each unit of the single product it makes: 

Direct materials  4 gallons at $8 per gallon Direct labor  1 hour at $16 per hour 

 During July, the company made 6,000 units of product and incurred the following costs: 

 Direct materials purchased 26,800 gallons at $8.20 per gallon Direct materials used  25,200 gallons Direct labor used  5,600 hours at $15.30 per hour 

Required:   Compute the materials price and quantity variances for the month. ii. Compute the labor rate and efficiency variances for the month.