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During May, Joliet Fabrics Corporation manufactured 500 units of a specail 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.
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