Question
25 Jay Levitt Company budgeted the following cost standards for the current year: Direct materials (2 kg of plastic at $6 per kilogram)$12.00Direct labour (2
Jay Levitt Company budgeted the following cost standards for the current year:
Direct materials (2 kg of plastic at $6 per kilogram)$12.00Direct labour (2 hours at $11 per hour)22.00Variable manufacturing overhead11.15Fixed manufacturing overhead6.25Total standard cost per unit$51.40
Actual costs for producing 2,740 units were as follows:
Direct materials used
5,750kgDirect materials purchased (6,800 kg)
$39,440Direct labour (6,900 hours)
$62,790Variable manufacturing costs
$32,800Fixed manufacturing costs
$17,400
Calculate the materials price variance for materials purchased.
Materials price variance$enter the materials price variance
select a type of the materials price variance
Favourable
Unfavourable
Neither favourable nor unfavourable
Calculate the materials quantity variance.
Materialsquantity variance
$enter the materials quantity variance
select a type of the materials quantity variance
Neither favourable nor unfavourable
Unfavourable
Favourable
Calculate the labour price variance.(Round answer to the nearest whole dollar, e.g. 5,275.)
Labour price variance
$enter the labour price variance rounded to the nearest whole
select a type of the labour price variance
Neither favourable nor unfavourable
Unfavourable
Favourable
Calculate the labour quantity variance.
Labour quantity variance$enter the labour quantity variance
select a type of the labour quantity variance
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