Jay Levitt Company budgeted the following cost standards for the current year:
Direct materials (2 kg of plastic at $5 per kilogram)..........$10.00
Direct labour (2 hours at $12 per hour)...........................24.00
Variable manufacturing overhead.................................12.00
Fixed manufacturing overhead......................................6.00
Total standard cost per unit........................................$52.00
Actual costs for producing 2,750 units were as follows:
Direct materials used.................................6,050 kg
Direct materials purchased (6,500 kg)...............$31,200
Direct labour (6,875 hours)...........................$68,750
Variable manufacturing costs.........................$33,000
Fixed manufacturing costs...........................$18,000
Instructions
(a) Calculate the material price variance for materials purchased.
(b) Calculate the material efficiency variance.
(c) Calculate the labour price variance.
(d) Calculate the labour efficiency variance.