The direct materials and direct labour standards for one bottle of Clean-All spray cleaner are given below: Standard...
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 millilitres | $ | 1.82 |
| Direct labour | 0.4 | hours | $ | 12.00 | per hour | $ | 4.80 |
During the most recent month, the following activity was recorded:
- 26,000 millilitres of material was purchased at a cost of $0.21 per millilitre.
- The company produced only 2,000 bottles, using 22,000 millilitres of material. (The rest of the material purchased remained in raw materials inventory.)
- 750 hours of direct labour time was recorded at a total labour cost of $9,000.
Required:
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).)
Homework Answers
Materials Price Variance = (SP-AP) *AQ
= (0.26-0.21)*26,000
= 1300 F
Materials Quantity Variance = (SQ_AQ) *SP
= (2,000*7 - 22,000)*0.26
= 2080 U
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The direct materials and direct labour standards for one bottle of Clean-All spray cleaner are given below: Standard...
The direct materials and direct labour standards for one bottle of Clean-All spray cleaner are given...
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Jay Levitt Company budgeted the following cost standards for
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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: Standard Quantity or Hours Standard Price...
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
Direct materials
7.30
pounds
$
2.80
per pound
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hours
$
9.00
per hour
$
5.40
During the most recent month, the following activity was
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16,600.00 pounds of material were purchased at a cost of $2.50
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Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for...
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Jay Levitt Company budgeted the following cost standards for
the current year:
Direct materials (2 kg of
plastic at $6 per kilogram)
$12.00
Direct labour (2 hours at $12
per hour)
24.00
Variable manufacturing
overhead
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Fixed manufacturing
overhead
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$40,002
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costs
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Fixed manufacturing costs
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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:
Standard Quantity or Hours
Standard Price
or Rate
Standard
Cost
Direct materials
7.30
pounds
$
2.80
per pound
$
20.44
Direct labor
0.60
hours
$
9.00
per hour
$
5.40
During the most recent month, the following activity was
recorded:
16,600.00 pounds of material were purchased at a cost of $2.50
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