Exercise 10-13 Labour Variances OBJECTIVE 5 CORNERSTONE 10.6 Hobby Company produces sails for small recreational sailboats. During the year, 120 were produced. The actual labour used was 178,000 hours at $15.20 per hour. Hobby h lowing labour standard: 1.5 hours at $14.80. Required: 1. Compute the labour rate variance. 2. Compute the labour efficiency variance. I OBJECTIVE 4 Exercise 10-14 5 Materials and Labour Variances At the beginning of the year, Shults Company had the following standard cost sheet f its plastic products: Direct materials (5 kg@$4.00) Direct labour (2 hrs.@ $11.25) Standard prime cost per unit $20,00 22.50 $42.50 The actual results for the year are as follows: a. Units produced: 175,000 b. Materials purchased: 930,000 kilograms@ $4.10 c. Materials used: 925,000 kilograms d. Direct labour: 362,500 hours @ $11.15 a lat ire Required: 1. Compute price and usage variances for materials 2. Compute the labour rate and labour efficiency variances om om OBJECTIVE 1 Exercise 10-15 Variances, Evaluation, and Behaviour Jackie Iverson was furious. She was about ready to fire Tom Rich, her purchasing age month ago, she had given him a salary increase and a bonus for his performance. She especially pleased with his ability to meet or beat the price standards. But now, she foun OBJECTIVE 4 Exercise 10-14 Materials and Labour Variances 5 At the beginning of the year, Shults Company had the following standard cost sheet for one of its plastic products: Direct materials (5 kg @ $4.00) Direct labour (2 hrs.@ $11.25) Standard prime cost per unit $20,00 22.50 $42.50 The actual results for the year are as follows: Units produced: 175,000 b. Materials purchased: 930,000 kilograms@ $4.10 c. Materials used: 925,000 kilograms d. Direct labour: 362,500 hours@ S11.15 a. Required: 1. Compute price and usage variances for materials 2. Compute the labour rate and labour efficiency variances