Pharoah Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. Direct materials (6 pounds at $1.60 per pound)$9.60 Direct labor (6 hours at $10.00 per hour)$60.00 During the month of April, the company manufactures 310 units and incurs the following actual costs. Direct materials purchased and used (2,400 pounds)$4,080 Direct labor (1,880 hours)$18,612 Compute the total, price, and quantity variances for materials and labor.

Materials

price variance = $240 Unfavorable

quantity variance = $864 Unfavorable

total variance =  $1,104 Unfavorable

Labor

price variance =  $188 Favorable

quantity variance = $200 Unfavorable

total variance = $12 Unfavorable

Explanation:

Materials

price variance = (Aq × Ap) - (Aq × Sp)

                        = (2,400 × $1.70) - (2,400 × $1.60)

                        = $240 Unfavorable

quantity variance = (Aq × Sp) - (Sq × Sp)

                             = (2,400 × $1.60) - (310 × 6 × $1.60)

                             = $864 Unfavorable

total variance = price variance + quantity variance

                       = $240 + $864

                       = $1,104 Unfavorable

Labor

price variance = (Aq × Ap) - (Aq × Sp)

                        = (1,880 × $9.90) - (1,880 × $10.00)

                        = $188 Favorable

quantity variance = (Aq × Sp) - (Sq × Sp)

                             = (1,880 × $10.00) - (310 × 6 × $10.00)

                             = $200 Unfavorable

total variance = price variance + quantity variance

                       = $188 + (-$200)

                       = $12 Unfavorable

the correct answer is b.)