Direct materials and manufacturing labour variances, solving unknowns. (CPA, adapted)

1. Standard DMLH for actual On May 1, 2010, Bovar Company began the manufacture of a new Internet paging device output achieved, 2,000 hours known as Dandy. The company installed a standard costing system to account for manufacturing costs. The standard costs for a unit of Dandy are as follows:LO1

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Direct materials (3 kg at $5 per kg) Direct manufacturing labour (0.5 hours at $20 per hour) Manufacturing overhead (75% of direct manufacturing labour costs) The following data were obtained from Bovar's records for the month of May: $15.00 10.00 7.50 $32.50 Debit Credit Revenues $125,000 Accounts payable control (for May's purchases of direct materials) 68,250 Direct materials price variance $3,250 Direct materials efficiency variance 2,500 Direct manufacturing labour price variance 1,900 Direct manufacturing labour efficiency variance 2,000 Actual production in May was 4,000 units of Dandy, and actual sales in May were 2,500 units. The amount shown for direct materials price variance applies to materials purchased during May. There was no beginning inventory of materials on May 1, 2010.