4 S 6 7 S The Litton Company has established standards as follows: Standard usage Standard price Direct Material 3 kg $ 4/kg Direct Labour 2 hr $ 8/hr Variable Manufacturing Overhead 2 hr $5/hr Actual production figures for the past year are given below. The company records the materials price variance when materials are purchased. Units Produced 600 Direct Material Used 2,000 kgs. Direct Material Purcahsed (3,000 kgs.) $ 11,400 Direct Labour Cost (1,100 hrs.) $ 9,240 Variable Manufacturing Overhead Cost Incurre $5,720 The company applies variable manufacturing overhead to products on the basis of direct labour hours. Required: 1. What was the materials price variance? Actual quantity Actual price Actual Results Actual quantity Standard price Actual Input @ Budgeted Cost Materials Price Variance D E F G H 27 2. What was the materials quantity variance? 28 29 30 Actual Input @ Budgeted Cost 31 32 33 Flexible Budget 34 Materials Quantity Variance 35 36 3. What was the labour rate variance? 37 38 39 Actual Results 40 41 42 Actual Input @ Budgeted Cost 43 Labour Rate Variance 44 45 4. What was the labour efficiency variance? 46 47 48 Actual Input @ Budgeted Cost 9 0 1 Flexible Budget 2 Labour Efficiency Variance 3 1 Labour Rate Variance 4. What was the labour efficiency variance? Actual price Actual quantity Standard price Standard quantity Flexible Budget Labour Rffiniana. Varia