Direct materials and manufacturing labour variances, solving unknowns. (CPA, adapted) (20-30 minutes) On 1 May 2000, Bienvenida, SA, began the manufacture of a new paging machine known as Panorama.

The company installed a standard costing system to account for manufacturing costs. The standard costs for a unit of Panorama are as follows:

REQUIRED Calculate each of the following items for Bienvenida for the month of May. Show your computations.
a i WT DAWOR wD Standard direct manufacturing labour-hours allowed for actual output achieved.
Actual direct manufacturing labour-hours worked.
Actual direct manufacturing labour wage rate.
Standard quantity of direct materials allowed Gin kg).
Actual quantity of direct materials used (in kg).
Actual quantity of direct materials purchased (in kg).
Actual direct materials price per kg. bhy1

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Direct materials (3 kg at Pta 5,000 per kg) Direct manufacturing labour (0.5 hours at Pta 20,000 per hour) Manufacturing overhead (75% of direct manufacturing labour costs) Pta 15,000.00 10,000.00 7,500.00 Pta 32,500.00 The following data were obtained from Bienvenida's records for the month of May: Revenues Accounts payable control DEBIT CREDIT Pta 125 million (for May's purchases of direct materials) 68.25 million Direct materials price variance Pta 3.25 million Direct materials efficiency variance 2.5 million 1.9 million 2 million Direct manufacturing labour price variance Direct manufacturing labour efficiency variance Actual production in May was 4,000 units of Panorama, and actual sales in May was 2,500 units. The amount shown for direct materials price vari- ance applies to materials purchased during May. There was no opening stock of materials on 1 May 2000.