ACCOUNTING BUSINESS.

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Question 6 - Variance Analysis and Cost behaviour- Michelle ( a ) Linh furniture Ltd produces fabric lounges. Price and quantity standards for the direct costs of production are: Direct material 5 metres of fabric at $7.50 per metre Direct labour 2 hours at $30 per hour a During November 2019: 200 lounges were produced. 1050 metres of fabric was used at a cost of $8,400 The direct labour cost incurred was $15,200 for 380 hours Calculate Direct Material price and usage variances and the Direct Labour rate and efficiency variances for November 2015. What do each of these variances mean