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Bonus practice question 2 Cats4Life manufactures the super-absorbent cat litter called "AbsorbMax. The company uses a standard costing system to account for manufacturing costs. The standard cost per bag of AbsorbMax is as follows: Direct materials: 5 kg at $2 per kg $10.00 Direct manufacturing labour: 0.25 DLHs at $20 per hour 5.00 4.00 Variable manufacturing overhead: 0.1 machine hours (MHs) at $40 per hour Fixed manufacturing overhead: 0.25 DLHs at $5 per hour 1.25 $20.25 The following information was extracted from Cats4Life's records for the month of March: Debit Credit Sales $57,123 Direct materials $29,040 ??? Direct materials price variance* $4,840 Direct materials quantity variance $1,050 Direct manufacturing labour rate variance $486 Direct manufacturing labour efficiency variance $788 Variable manufacturing overhead $9,000 Fixed manufacturing overhead $2,000 Applied fixed manufacturing overhead $2,625 * This amount applies to materials purchased during March. There were no beginning inventories at the start of March. Budgeted production for the year was 24,000 bags that is 2,000 bags per month and this was used to determine the fixed manufacturing overhead rate (based on DLHs) and the variable manufacturing overhead rate (based on MHs). Actual production in March was 2,100 bags of AbsorbMax and actual sales were 1,900 bags. During March, 200 MHs were employed in production. Required a. Compute each of the following items for Cats4Life for the month of March. Show your calculations. Actual direct manufacturing labour hours worked. b. Actual direct manufacturing labour wage rate. c. Actual quantity of direct materials used. d. Actual quantity of direct material purchased. e. Actual direct materials price per kilogram