The direct materials and direct labour standards for one bottle of Clean-All spray cleaner are given below:
Standard Quantity or Hours |
Standard Price or Rate |
Standard Cost |
|||||
Direct materials | 7.0 | millilitres | $ | 0.26 | per millilitre | $ | 1.82 |
Direct labour | 0.4 | hours | $ | 12.00 | per hour | $ | 4.80 |
During the most recent month, the following activity was recorded:
Required:
1. Compute the direct materials price and quantity variances for the month. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).)
2. Compute the direct labour rate and efficiency variances for the month. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).)
1) | Direct Material Price Varaince = Actual Quantity Used * (Standard Price per unit - Actual Price Per Unit | |||||
= 26000 Units*($0.26 per millilitres-$0.21 per ) | ||||||
=$1300 (Favorable) | ||||||
Direct Material Quantity Varaince = Standard Price Per Unit * (Standard Quantity For Actual Units Produced - Actual Quantity) | ||||||
= $0.26 Per Unit ([3000Units*7 millilitres Per Uniit] - [3000 Units *8.667 Per Unit]) | ||||||
=$1300 (Unfavorable) | ||||||
2) | Direct Labor Rate Varaince = Actual Hours * (Standard Rate Per Hour - Actual Rate Per Hour) | |||||
= 750 Hours*($12 per hour-$12 per hour) | ||||||
=$0 (Unfavorable) | ||||||
Direct Labor Efficiency Variance = Standard Rate Per Hour * (Standard Hours For Actual Units Produced - Actual Hours) | ||||||
= $12 Per Hour ([3000Units*0.4 Hours Per Unit] - [3000 Units *0.25 Hours Per Unit]) | ||||||
=$5400 (Favorable) |
The direct materials and direct labour standards for one bottle of Clean-All spray cleaner are given...
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Huron Company produces a commercial cleaning compound known as
Zoom. The direct materials and direct labor standards for one unit
of Zoom are given below:
Please help me correct my error, provide me the way to do it too
if possible:
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Quantity or Hours Standard Price or Rate Standard Cost $16.25 5.75 Direct materials...