Question
For July 2022, the requirements and details for the company's sole product are as follows: Standards: Direct materials 4kg @ $7 per kg Direct labour
For July 2022, the requirements and details for the company's sole product are as follows:
Standards: Direct materials 4kg @ $7 per kg Direct labour 5 hours @ $60 per hour Variable manufacturing overheads $12 per labour hour Normal production 12 000 units per month
Actual information for May 2022: Direct materials used 43 000kg @ $7.50 per kg Direct labour 56 000 hours @ $58 per hour Variable manufacturing overheads $649 600 Production 11 000 units manufactured
Indicate the quantity of the material variance used and whether the labor efficiency variance is favorable or unfavorable.
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