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Information relating to direct materials and direct labour during the last period at Greencorn Company is as follows: Flexible budget for direct materials totaled $220,000
Information relating to direct materials and direct labour during the last period at Greencorn Company is as follows:
- Flexible budget for direct materials totaled $220,000
- Flexible budget for materials used in production was for 50,000 units @ 2 kg per unit
- Materials purchased and used during the month were 95,000 kg @ $2.30 per kg
- Actual direct labour hours: 5,100
- Direct labour efficiency variance: $1,600 unfavourable
- Direct labour price variance: $2,550 favourable
- Total actual direct labour cost: $160,650
Required: (3 marks each)
- What was the Materials Price Variance for the month?
- What was the Materials Efficiency Variance for the month?
- What was the actual direct labour hourly rate?
- What was the standard direct labour hourly rate?
- What was the standard direct labour hours allowed for the number of units produced?
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