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Indigo Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product: Direct materials (6.00 kg at
Indigo Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product:
Direct materials (6.00 kg at $3.45 per kilogram) | $20.70 | ||
Direct labour (2.20 hours at $11.00 per hour) | $24.20 |
During the month of April, the company manufactures 190 units and incurs the following actual costs:
Direct materials purchased and used (1,340 kg) | $4,824 | ||
Direct labour (390 hours) | $4,095 |
Calculate the total, price, and quantity variances for materials and labour. (Round intermediate calculations to 2 decimal places, e.g. 1.25 and final answer to 0 decimal places, e.g. 125.)
Materials | Labour | ||||||
---|---|---|---|---|---|---|---|
Price variance | $enter a dollar amount | select an option UnfavourableFavourableNeither favourable nor unfavourable | $enter a dollar amount | select an option UnfavourableNeither favourable nor unfavourableFavourable | |||
Quantity variance | $enter a dollar amount | select an option Unfavourable/Favourable/Neither favourable nor unfavourable | $enter a dollar amount | select an option Neither favourable nor unfavourable/Favourable/Unfavourable | |||
Total variance | $enter a dollar amount | select an option Favourable/Unfavourable/Neither favourable nor unfavourable | $enter a dollar amount | select an option Unfavourable/Favourable/Neither favourable nor unfavourable |
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