Question
Jay Levitt Company budgeted the following cost standards for the current year: Direct materials (2 kg of plastic at $6 per kilogram) $12.00 Direct labour
Jay Levitt Company budgeted the following cost standards for the current year:
Direct materials (2 kg of plastic at $6 per kilogram) $12.00
Direct labour (2 hours at $11 per hour): $22.00
Variable manufacturing overhead: $10.55
Fixed manufacturing overhead: $6.10
Total standard cost per unit: $50.65
Actual costs for producing 2,710 units were as follows:
Direct materials used: 5,650kg
Direct materials purchased (6,470 kg): $37,526
Direct labour (6,910 hours): $62,190
Variable manufacturing costs: $32,700
Fixed manufacturing costs: $17,400
A) Calculate the materials price variance for materials purchased.
Materials price variance: $_____
choose: unfavourable, favourable, neither favourable or unfavourable
B) Calculate the materials quantity variance.
Materialsquantity variance: $_____
choose: unfavourable, favourable, neither favourable or unfavourable
C) Calculate the labour price variance.(Round answer to the nearest whole dollar, e.g. 5,275.)
Labour price variance: $______
choose: unfavourable, favourable, neither favourable or unfavourable
D) Calculate the labour quantity variance.
Labour quantity variance: $_____
choose: unfavourable, favourable, neither favourable or unfavourable
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