At the beginning of October, Cornerstone Printers Company budgeted 16,000 books to be printed in October at standard direct materials and direct labor costs as follows:
Direct materials …… $24,000
Direct labor ………….. 8,000
Total ………………. $32,000
The standard materials price is $0.60 per pound. The standard direct labor rate is $10 per hour. At the end of October, the actual direct materials and direct labor costs were as follows:
Actual direct materials …. $21,600
Actual direct labor ……….. 7,200
Total …………………… $28,800
There were no direct materials price or direct labor rate variances for October. In addition, assume no changes in the direct materials inventory balances in October. Cornerstone Printers Company actually produced 14,000 units during October.
Determine the direct materials quantity and direct labor time variances.