Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Baron Ltd makes a commercial cleaning compound known as Loomp. The direct materials and direct labour standards for one unit of Loomp follow Standard Quantity

image text in transcribed
Baron Ltd makes a commercial cleaning compound known as Loomp. The direct materials and direct labour standards for one unit of Loomp follow Standard Quantity or Standard Price Standard Cost hours or Rate Direct materials 2.1 kg $5.50 per kg $11.55 Direct Labour 0.2 hour 12.00 per hour 2.40 During the most recent month, the following activity was recorded a. 9,000 kg of materials were purchased at a cost of $5.20 per kg b. All of the material purchased was used to produce 4,000 units of Loomp c. A total of 750 hours of direct labour time was recorded at a total labour cost of $10,425 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Finance, European Edition

Authors: Peter Moles, Robert Parrino, David S. Kidwell

1st Edition

0470683708, 9780470683705

More Books

Students also viewed these Accounting questions