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Calculate materials and labour variances and list reasons for unfavourable variances. E12.26 (LO 2, 3, 4) The following direct materials and direct labour data are
Calculate materials and labour variances and list reasons for unfavourable variances. E12.26 (LO 2, 3, 4) The following direct materials and direct labour data are for the operations of Batista Manufacturing Company for the month of August: Costs Quantities Actual labour rate $13.00 per hour Actual hours incurred and used 3,200 hours Actual materials price $89.00 per Actual quantity of materials purchased and 910 tonnes tonne used Standard labour rate $12.00 per hour Standard hours used 3,240 hours Standard materials $90.00 per Standard quantity of materials used 900 tonnes price tonne Instructions a. Calculate the total, price, and quantity variances for materials and labour. b. Provide two possible explanations for each of the unfavourable variances calculated in part (a), and suggest which department might be responsible for the unfavourable result
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