Standards are 4 sheets of ½-inch steel at $110 per sheet and 14 hours of labor at a standard wage rate of $13. During July, Basil Tooling produced 600 units. Materials purchased and used totaled 2,540 sheets at a total cost of $268,850. Payroll totaled $112,930 for 8,770 hours worked. Calculate the: 1. Total Direct Material Variance  2. Total Direct Labor variance

Question

Basil Tooling uses a standard cost system to account for the costs of its one product. Standards are 4 sheets of ½-inch steel at $110 per sheet and 14 hours of labor at a standard wage rate of $13. During July, Basil Tooling produced 600 units. Materials purchased and used totaled 2,540 sheets at a total cost of $268,850. Payroll totaled $112,930 for 8,770 hours worked.

Calculate the:

1. Total Direct Material Variance 

2. Total Direct Labor variance 

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