Direct manufacturing labour and direct materials variances, missing data. (CMA, adapted). Morro Bay Surfboards is a California company that manufactures fibreglass surf- boards. The standard cost of direct materials and direct manufacturing labour is $100 per board. This includes 20 pounds of direct materials, at the budgeted price of $2 per pound, and 5 hours of direct manufacturing labour, at the budgeted rate of $12 per hour. Following are additional data for the month of July:

REQUIRED 1. Compute direct manufacturing labour variances for July.
2. Compute the actual pounds of direct materials used in production in July.
3. Calculate the actual price per pound of direct materials purchased.
4. Calculate the direct materials price variance.LO1

Transcribed Image Text:

Units completed Direct material purchases Cost of direct material purchases Actual direct manufacturing labour-hours Actual direct-labour cost Direct materials efficiency variance There were no beginning inventories. 6,000 units 150,000 pounds $292,500 32,000 hours $368,000 $ 12,500 U