Question
Apollo Can Ltd manufactures recyclable soft drink cans. A unit of production is a box of 12 cans. The following standards have been set by
Apollo Can Ltd manufactures recyclable soft drink cans. A unit of production is a box of 12 cans. The following standards have been set by the production engineering staff and the factory accountant:
Direct material | Direct labour |
Quantity: 5 kilograms | Quantity: 0.43 hour |
Price: $0.59 per kilogram | Rate: $21 per hour |
Actual material purchases amounted to 244,000 kilograms at $0.58 per kilogram. Actual costs incurred in the production of 49,000 units were as follows:
Direct material | $126,000 for 274,000 kilograms |
Direct labour | $210,000 for 15,000 hours |
Enter the amount of direct material price variances in the answer block below (please note that negative sign represents the variance is unfavourable):
Answer:
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