Indigo Manufacturing, which produces a single product, has prepared the following standard cost sheet for one unit of the product. Direct materials (6 pounds at $2 per pound) Direct labor (2 hours at $12 per hour) During the month of April, the company manufactures 510 units and incurs the following actual costs. Direct materials purchased and used (3,320 pounds) Direct labor (1,050 hours) Total Variance Compute the total, price, and quantity variances for materials and labor. Identify whether each variance is favorable or unfavorable. Price Variance Quantity Variance $ CA +A $12 $24 $ $ CA $7,304 $12,075 Materials < < LA LA $ LA $ Labor < <

Indigo Manufacturing, which produces a single product, has prepared the following standard cost sheet for one unit of the product. Direct materials (6 pounds at $2 per pound) Direct labor (2 hours at $12 per hour) During the month of April, the company manufactures 510 units and incurs the following actual costs. Direct materials purchased and used (3,320 pounds) Direct labor (1,050 hours) Total Variance Compute the total, price, and quantity variances for materials and labor. Identify whether each variance is favorable or unfavorable. Price Variance Quantity Variance $ CA +A $12 $24 $ $ CA $7,304 $12,075 Materials < < LA LA $ LA $ Labor < <