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Brick Company produces a single product. The company has set the following standards for materials and labour: Direct Materials Direct Labour Standard quantity or hours

Brick Company produces a single product. The company has set the following standards for materials and labour:

Direct Materials Direct Labour
Standard quantity or hours per unit ? kilograms 3 hours
Standard price or rate ? per kilogram $15 per hour
Standard cost per unit ? $45

During the past month, the company purchased 7,000 kilograms of direct materials at a cost of $26,250. All of this material was used in the production of 1,300 units of product. Direct labour cost totalled $55,125 for the month. The following variances have been computed:

Materials price variance $1,750 favourable
Total materials variance $250 unfavourable
Labour efficiency variance $6,000 favourable

Required: a) For direct materials, compute the standard price per kilogram, the standard quantity allowed for materials in total for the month's production, and the standard quantity per unit of product. b) For direct labour, compute the actual direct labour cost per hour for the month and the labour rate variance.

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