Colin Ltd produces one product, the Col. The standard direct costs for each unit of Col are
Question:
Colin Ltd produces one product, the Col. The standard direct costs for each unit of Col are as follows:
7 metres of material at $5.75 per metre.
1.5 hours of direct labour at S5.60 per hour.
During January 2015, Cohn Ltd budgeted to produce 4400 units of Col but actually produced 5200 units. Production used 6.5 metres of material for each unit at a cost of $5.85 per metre. The total cost for direct labour was $44 330, paid at a rate of $5.50 per hour.
Required
Calculate the following variances for Colin Ltd for January 2015:
a. Direct material price variance
b. Direct material usage variance
c. Direct labour rate variance
d. Direct labour efficiency variance.
Step by Step Answer:
Accounting For Cambridge International AS And A Level
ISBN: 9780198399711
1st Edition
Authors: Jacqueline Halls Bryan, Peter Hailstone