The direct materials and direct labour standards for one bottle of Clean-All spray cleaner are given below:

During the most recent month, the following activity was recorded:
a. 20,000 mi llilitres of material was purchased at a cost of $0.25 per millilitre.
b. All of the material was used to produce 3,000 bottles of Clean-All.
c. 625 hours of direct labour time was recorded at a total labour cost of $10,000.

Required:
1. Compute the direct materials price and quantity variances for the month.
2. Compute the direct labour rate and efficiency variances for the month.

Transcribed Image Text:

Direct materials. Direct labour... Standard Quantity or Hours 6.0 mL 0.2 hours Standard Price or Rate $0.20 per mL $15.00 per hour Standard Cost $1.20 $3.00