2. Accounting
3. hi my question is regarding direct material and labour variances...

# Question: hi my question is regarding direct material and labour variances...

###### Question details

Hi my question is regarding direct material and labour variances: manufacturer

Durin Jan, company Y produced 1 000 units of a special product called X and the accounting records indicated the following:

 Direct material purchased 36 000kg @ $2.76 per kg. Direct material used 19 000kg Direct labour 4 200hrs @$36 per hour

Product X has the following standard prime costs:

 DIrect material: 20 kg @ 2.70 per kg. $54.00 Direct labour hours: 4 hrs @$34 per hour 136.00 Standard prime cost per unit \$190.00

Required:

1. Calculate the total standard direct material costs and direct labour costs for Jan.

2. For the month of Jan, calculate the following variances, indicating whether each is favourable or unfavourable:

a) direct material price variance

b) direct material quantity variance

c) direct labour rate variance

d) direct labour efficiency variance.