1. Business
  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.

 

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution